Riverstone full-year net profit up 119.1% to RM1.4 b

MALAYSIAN glove maker Riverstone Holdings' net profit rose 119.1 per cent to RM1.4 billion (S$449.9 million) for the full year ended Dec 31, 2021, from RM647.3 million the year before.

Revenue was up 68.5 per cent to RM3.1 billion from RM1.8 billion the previous year, due to a higher sales volume and average selling prices (ASP) for both healthcare and cleanroom gloves as demand climbed for these products.

Gross profit increased 112.4 per cent to RM1.91 billion for FY2021, with gross profit margin improving from 49.1 per cent to 61.9 per cent, the group announced on Tuesday (Feb 22).

Despite the increased sales activities, selling and distribution expenses rose only 29.1 per cent year-on-year to RM28.4 million in FY2021. General and administrative expenses increased 41 per cent to RM48.6 million mainly due to an increase in staff costs.

Earnings per share for FY2021 stood at 95.66 sen compared with 43.67 sen in FY2020.

Net asset value per share came in at RM1.57 as at Dec 31, 2021 versus RM0.92 the year before. The board has recommended a special interim dividend of 10 sen and a final dividend of 28 sen.

Said executive chairman and chief executive Wong Teek Son: "While the demand for health care gloves during the pandemic has driven ASPs and volumes for glove manufacturers, we are still very much focused on our cleanroom segment. This segment has proven its resiliency and has grown steadily over the years. Our customers in this space rely on the specific properties and elements that our gloves are known for."

Riverstone will keep an eye on the market forces affecting its foreign exchange exposure, raw material and production costs, said Wong.

Meanwhile, restrictions in Malaysia as a result of the pandemic continue to weigh on the group's operations. Plans to increase capacity by 1.5 billion gloves by the end of 2021 has since been delayed to end 2022.

Shares of Riverstone ended Tuesday at S$0.735, down S$0.025 or 3.3 per cent.