Supermax Q2 net profit rises despite higher latex prices

15 Feb 2019 / 11:00 H.

PETALING JAYA: Supermax Corp Bhd’s net profit for the second quarter ended Dec 31, 2018 rose 6.22% to RM38.14 million from RM35.90 million a year ago, despite higher nitrile latex prices, and advertising and promotion (A&P) expenses.

In a filing with Bursa Malaysia, Supermax said the higher A&P expenses was in line with the group’s efforts to promote its brand of contact lens products, Aveo.

Revenue for the quarter rose 14.64% to RM385.10 million from RM335.91 million a year ago underpinned by global sales of its natural rubber and nitrile rubber gloves, which increased 14.6% from a year ago.

The increase was attributed to the commissioning of the new replacement lines at its Perak plant and full quarter contribution from Plant 10 and Plant 11.

The group has declared an interim dividend of 1.5 sen for the quarter under review, payable on April 18, 2019.

For the six-month period ended Dec 31, 2018, Supermax saw its net profit increase 16.1% to RM74.08 million from RM63.80 million a year ago while revenue rose 16.08% to RM752.15 million from RM647.94 million.

The group expects the global market for disposable gloves to remain vibrant for both the natural rubber and nitrile variants, driven by factors such as rising healthcare awareness and healthcare reforms mandating its use in the medical and non-traditional sectors.

“Global demand continues to grow at a rate of 8-10% per annum. These positive factors continue to augur well for the company and the industry as a whole,” it said.

In Perak, commercial production at the rebuilt plant commenced in July last year while construction works for its 12th plant had also commenced, and will further add to the group’s production capacity.

For the contact lens division, the group said it has set up its production operations and is bringing its products to more global markets, after securing necessary certifications and approvals from various overseas authorities.

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