Riverstone H1 net profit surges to RM1.04b from RM137.5m

MALAYSIAN glove maker Riverstone Holdings AP4 posted a net profit of RM1.04 billion (S$333.1 million) for its first half ended June 30, 2021, nearly eight times the RM137.5 million for the same period in the previous year.

This was driven by a surge in demand for the group's healthcare examination and high-tech clean-room gloves amid the Covid-19 pandemic, the group said in a bourse filing on Thursday.

Earnings per share stood at 70.22 sen for the half-year period, up from 9.28 sen a year ago.

Revenue of RM2.02 billion for the period was treble the RM626.7 million for the prior-year period.

An interim dividend of 10 sen was recommended for the half-year period, up from four sen a year ago. The date payable will be announced later.

Selling and distribution expenses rose 67.2 per cent on year to RM15.6 million from RM9.3 million a year ago, which the group attributed to a marked increase in sales activities.

General and administrative expenses also rose 96.8 per cent on year to RM30.9 million from RM15.7 million, due to an increase in payout of performance incentives towards its production line workers, the group said.

Executive chairman and chief executive of Wong Teek Son said: "We are confident that our diversified income streams, strong R&D (research and development) and product development capabilities as well as market leading position in the clean-room glove business will ensure earnings resiliency and sustainable long-term growth for the group."

"We have already set our sights on longer-term prospects to capture growth beyond the pandemic situation," Mr Wong added, noting that the group has developed new product offerings that will allow it to venture into markets including food processing, pharmaceutical and surgical glove segments.

The group had in January acquired industrial land in Malaysia to develop its new clean-room glove processing facility, which it said can raise its processing capabilities to more than 2.5 billion pieces of clean-room gloves per annum, up from the current two billion.

Riverstone added that its production capacity will also increase by 1.5 billion gloves upon completing phase seven of its expansion plans, and by an additional 1.5 billion gloves each year in FY2022 and FY2023 afterwards. This will bring the group's total forward capacity to 15 billion pieces of gloves per annum by the end of the period, it said.

Shares of Riverstone closed at S$1.27 on Friday, up 4.96 per cent.

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