Supermax sees 42.8% jump in Q1 earnings on higher selling prices, strong US dollar

PETALING JAYA: Supermax Corp Bhd saw a 42.8% rise in net profit to RM27.9 million for the first quarter ended September 30, 2017 against RM19.54 million in the previous corresponding period, driven by higher selling prices, stronger US dollar as well as improved efficiency and productivity.
Revenue expanded 16% from RM269 million to RM312.02 million.
The glove manufacturer said in a filing with the stock exchange that global demand for both natural rubber and nitrile gloves remains strong with healthcare awareness continuing to rise, increasing regulation of the healthcare sector and ever higher healthcare spending in both the public and private sectors driving demand growth.
It also noted that the Chinese government's concerted efforts to clamp down on the vinyl glove industry in China has also proven to be a boon for the natural rubber and nitrile glove producers as demand has shifted to them.
The clamp down is due to the highly polluting nature of vinyl glove plants which do not comply with China's environmental regulations.
Supermax said in line with its continuous improvement efforts, the group is refurbishing, rebuilding and modernising its older manufacturing plants to gain maximum efficiency in production capability.
At 12.30pm, Supermax shares fell 7 sen or 3.4% to RM1.99, with some 2.71 million shares changing hands.