KUALA LUMPUR (Aug 30): Glove maker Supermax Corp Bhd's net profit jumped 59% to RM15.06 million for the fourth financial quarter ended June 30, 2019 (4QFY19) from RM9.47 million a year ago, on higher revenue from global sales of its natural rubber and nitrile rubber gloves.
This resulted in a higher earnings per share of 1.15 sen for 4QFY19 compared with 0.72 sen for 4QFY18.
Revenue for the quarter under review rose 14.1% to RM375.96 million from RM329.46 million a year ago, which Supermax attributed to the commissioning of the new replacement lines within the group and stronger US dollar against the ringgit.
The strong quarterly performance lifted the group's net profit for the full financial year (FY19) by 16% to RM123.75 million from RM106.66 million in the previous year, while revenue grew 14.2% to RM1.49 billion in FY19 from RM1.3 billion in FY18.
In a bourse filing today, Supermax said the higher revenue was achieved on the back of increased production capacity from its rebuilt plants.
On prospects, Supermax said it is well positioned to capitalise on global demand that is expected to continue growing.
For its glove division, the group will continue to focus on driving efficiency through various initiatives including its replacement and rebuilding programme for its older plants, as well as the on-going construction of its latest Plant No. 12.
Supermax is also looking beyond Plant No. 12 for its next phase of capacity growth and has acquired a piece of land in Meru, Klang, on which it plans to build its 13th, 14th and 15th plants that will see capacity grow over 60% to more than 44 billion pieces per year over the next five years.
As for its contact lens division, Supermax said it will continue to work on obtaining the licences and approvals for more of its products in more countries; further expanding its product range to include other types of lenses such as colour lenses; and increasing market penetration for its products globally in order to fully utilise its capacity.
At 4.59pm, shares of Supermax were down 4 sen or 2.61% at RM1.49, bringing a market capitalisation of RM2.03 billion.