Riverstone's Q1 net profit soars to RM522.7m

MALAYSIAN glove maker Riverstone Holdings posted a net profit of RM522.7 million (S$169.7 million) for the first quarter ended March 31, 2021, about 11 times its RM46.6 million net profit recorded the year before.

Revenue was RM1 billion, up from RM279.4 million. This represented the largest quarterly revenue for the group from at least the start of FY2017, going by a business update posted on Tuesday.

Gross profit rose to RM708.3 million from RM67.1 million.

Riverstone's Q1 RM 522.7 million net profit also translated to the largest quarterly net profit recorded since at least 2017. As a means of comparison, net profit was RM 647.3 million for the whole of FY2020.

The group plans to add 1.5 billion pieces of gloves to its production in 2021, for a total capacity of 12 billion gloves per annum by year-end.

Two further phases of expansion from 2022 to 2023 is projected to increase capacity to up to 1.5 billion gloves per annum, giving a total capacity of up to 15 billion gloves by end-FY2023.

Riverstone acquired an additional parcel of industrial land in Bukit Beruntung in Selangor in January 2021. It spans 6,740.76 square metres, and will support the expansion of production capacity for cleanroom gloves as well as its operations.

The counter closed at S$1.32 on Tuesday, up S$0.01 or 0.76 per cent.