Riverstone posts 68% jump in Q2 profit

LIFTED by a higher demand for gloves, Riverstone Holdings' net profit for the second quarter jumped 68.1 per cent to RM27 million (S$9.7 million), the company announced on Tuesday.

This translates to earnings per share of 7.27 sen for Q2 2015, up from 4.32 sen in the corresponding quarter last year.

Revenue rose 33.2 per cent to RM129 million.

Cost of goods sold rose 27.1 per cent to RM90.2 million.

The company has declared an interim dividend of 2.40 sen per share.

On the group's prospects, executive chairman and CEO Wong Teek Son said: "Coupled with macroeconomic challenges such as fluctuations in raw material prices, we also acknowledge the competitive industry landscape for glove manufacturing. We continue to exercise prudence to mitigate these uncertainties as we plan for our subsequent phases of expansion.

"We are however encouraged by the strong demand for our products and accelerated our second phase of expansion to complete ahead of time. Scheduled for completion by the end of third quarter 2015 instead of year end, we expect to add another billion pieces to our annual production capacity, bringing it to 5.2 billion."