Glovemaker’s revenue for the period also up by 33.9%, driven by increased production volume and higher average selling prices
GLOVEMAKER Riverstone Holdings reported a rise of 21.8 per cent in net profit to RM72.2 million (S$21.8 million) for the third quarter of the 2024 financial year, from RM59.3 million in Q3 FY2023.
In a bourse filing on Monday (Nov 11), Riverstone announced a 33.9 per cent increase in Q3 FY2024 revenue to RM298.4 million, from RM222.8 million in the same period a year prior. This was mainly driven by increased production volume and higher average selling prices.
“Our focus on operational efficiency and customised gloves continues to deliver results,” said Wong Teek Son, executive chairman and chief executive officer of Riverstone.
The gross profit margin for the latest Q3 declined marginally on year by 0.2 percentage point to 34.7 per cent on higher cost of sales. The operating profit margin also fell 2.7 percentage points to 30.3 per cent in Q3 due to a strengthening ringgit against the US dollar.
The board has recommended an interim dividend of RM0.04 per share for the nine-month period ended Sep 30. Coupled with the RM0.08 dividend paid earlier this year, the total dividend payout ratio stands at 82 per cent.
Riverstone is on track to increase capacity, adding on six new cleanroom production lines to cater to the growing demand from the semiconductor and electronics sector. The company is also building six new single-production lines specifically for healthcare gloves.
Of the new capacity, the six cleanroom lines and three healthcare lines are scheduled to be commissioned by the end of this year, with an additional three healthcare lines expected to be ready by the first quarter of FY2025, added Wong.
Shares of Riverstone closed down 2.2 per cent or S$0.02 at S$0.89 on Monday.
