Thursday 28 Mar 2024
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KUALA LUMPUR (May 28): Glove maker Supermax Corp Bhd saw net profit rise 69% to RM33.38 million in the third financial quarter ended March 31, 2018 (3QFY18) from RM19.75 million a year ago, on higher revenue, increased production capacity and improved operational efficiency.

This resulted in higher earnings per share of 5.06 sen for 3QFY18, compared with 2.94 sen for 3QFY17.

Quarterly revenue also grew 6.1% to RM327.07 million from RM308.23 million a year ago, on the back of strong demand for gloves and higher output recorded in the current quarter under review, despite the weaker US dollar versus the ringgit.

The group also declared an interim dividend of 3 sen, amounting to RM19.7 million for the financial year ending June 30, 2018 (FY18), payable on June 28.

For the cumulative nine months (9MFY18), its net profit rose 57.1% to RM97.18 million, from RM61.86 million a year ago, while revenue increased 19.8% to RM975 million, from RM813.96 million in 9MFY17.

On prospects, Supermax said global demand for both natural rubber and nitrile gloves remain strong, with healthcare awareness continuing to rise, increasing regulation on the healthcare sector and ever higher healthcare spending in both the public and private sectors driving demand growth.

"These positive factors continue to augur well for the group and the industry as a whole," the group added.

Supermax also said it will invest RM333 million in capital expenditure over the next two years to build its 12th plant in Meru, Klang.

"This plant will add a further 2.2 billion pieces to the group's annual production capacity, which will increase to 27.2 billion pieces," it added.

In the near term, Supermax has embarked on a rebuilding and replacement programme aimed at reviving older manufacturing plants with newer machines, to extract higher production output.

Supermax expects to garner a net increase of 3.8 billion pieces of gloves to its total annual capacity, when the exercise is completed.

On its contact lens business, the group will continue launching its products in various overseas markets, after obtaining the necessary approvals.

Supermax shares closed down one sen or 0.31% at RM3.23 today, bringing a market capitalisation of RM2.14 billion. Year-to-date, the stock has gained 63% from RM1.98 on Dec 29, 2017.

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