Supermax records RM20.89 mln pre-tax profit in 3Q17

KUALA LUMPUR: Supermax Corporation Bhd recorded a pretax profit of RM20.89 million in the third quarter ended March 31, 2017 (3Q17), while revenue stood at RM308.2 million, contributed by the global sales of natural rubber and nitrile rubber gloves.

On profitability, the group recorded earnings before interest, tax, depreciation and amortisation and pre-tax profit margins of 11.5 per cent and 6.8 per cent, respectively, the company said in a filing to Bursa Malaysia yesterday.

There is no year-on-year comparison available due to the change in the financial year-end earlier.

The group’s pre-tax profit decreased 22.6 per cent to RM20.894 million previously while revenue rose 30.2 per cent from RM308.22 million.

Supermax said revenue for the reviewed quarter rose on the back of higher output recorded from some refurbishment work, higher average selling prices due to increased raw material prices, as well as, a stronger US dollar against the ringgit.

“However, there were some margin squeeze owing to sharply-rising raw material prices, pre-operating costs incurred on new start-ups overseas, as well as, advertising and promotional costs incurred for the launch our new contact lens products abroad,” it said.

On prospects, Supermax said global demand for both natural rubber and nitrile gloves remained strong with continually rising healthcare awareness, increasing regulations in the healthcare sector and ever higher healthcare spending in both public and private sectors.

“These positive factors augurs well for the company and the industry as a whole,” it added. — Bernama