Riverstone posts 55% H1 net profit decline on weakening demand for consumer electronics

MALAYSIAN glovemaker Riverstone Holdings posted a 55.2 per cent decline in net profit to RM93.6 million (S$27.5 million) for the six months ended Jun 30, 2023, down from RM208.9 million in the corresponding period a year ago.

Revenue fell 38.7 per cent to RM462.2 million in the same period, from RM754.3 million a year earlier.

In a bourse filing on Monday (Aug 7), the company attributed the decline to a decrease in cleanroom gloves orders as end-demand for consumer electronics fell.

It added that based on International Data Corp reports, global smartphone, PC and tablet shipments are expected to rebound in 2024.

Riverstone chief executive and executive chairman Wong Teek Son said: “On our cleanroom glove products, though there are some near-term headwinds due to weakening end-demand for consumer electronics, we are anticipating a sector recovery in the first half of next year.

“That, coupled with an improving product mix, will set us up for a stronger FY2024.” He added that the company saw a larger proportion of customised products sold to customers in the healthcare sector.

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Riverstone has declared an interim dividend of RM0.05 per share, down from the RM0.10 per share dividend it declared for the same period last year. The interim dividend translates to a payout ratio of 79 per cent based on the company’s H1 net profit.

Shares of Riverstone closed flat at S$0.63 on Monday, before the results were released.