Supermax posts higher earnings in Q2

PETALING JAYA: Glovemaker Supermax Corp Bhd has registered a net profit of RM38.14mil for its second quarter ended Dec 31, representing a 6% increase from the same quarter last year.

According to a Bursa Malaysia filing, the group recorded a 14.6% year-on-year increase in total revenue of RM385.1mil during the quarter, attributed to the commissioning of the new replacement lines at its Perak plant and full-quarter contribution from Plants 10 and 11.

This brought its first-half financial year 2019 (FY19) net profit to RM74.08mil, which grew 16% when compared to the corresponding period in FY18.

The group said the global market for disposable gloves remained vibrant for both the natural rubber and nitrile variants, driven by various factors including rising healthcare awareness and healthcare reforms mandating its use in the medical and other non-traditional sectors.

Global demand continues to grow at a rate of 8% to 10% per annum.

Additionally, construction work to build the group’s 12th plant has commenced and will further add to the group’s production capacity when completed.

Meanwhile, Supermax said it continues to make progress in developing its contact lens business.

The group has set up its production operations and is bringing its products to more global markets, following efforts to secure the necessary certifications and approvals from various overseas authorities, it said.

In June 2018, Supermax met the stringent requirements of the Japanese medical device authority and obtained the product licence to export its contact lenses to Japan, which is the second-largest contact lens market in the world.

Then in October 2018, the group launched its brand of contact lenses, Aveo, locally in Malaysia.

“Going forward, the group will continue to work on obtaining the necessary product licences and approvals, expand its product range to include other types of lenses such as toric and colour lenses, as well as increase market penetration for its products globally,” said Supermax.

The board of directors of Supermax has declared an interim single-tier dividend of 1.5 sen for FY19, with book closure and payment dates on March 20, 2019 and April 18, 2019, respectively.

Supermax closed 4.6% higher at RM1.60, traded on a volume of 13.77 million shares.