Supermax's Q1 net profit slips to RM638.52mil, declares 5 sen dividend

 Publish date: Thu, 18 Nov 2021, 8:31 AM

KUALA LUMPUR: Supermax Corp Bhd's net profit for the first quarter (Q1) ended Sept 30, 2021, narrowed to RM638.52 million from RM789.52 million, mainly due to lower average selling prices (ASPs) for gloves.
It said competition in the rubber glove industry intensified significantly following a period of substantial capacity expansion across the industry as both existing and new players ramped up their production capacities.
Revenue for the quarter, however, rose by 7.6 per cent to RM1.45 billion compared to the corresponding quarter a year ago, on the back of continued strong global demand for the group's medical gloves and other personal protective equipment (PPE) amid the global COVID-19 pandemic.
It recorded increased sales from the additional capacity generated by its newest plant which was commissioned during the year, the company said in a filing with Bursa Malaysia. 
Meanwhile, the company has declared an interim Single Tier Dividend of five sen per ordinary share for the current financial year ended June 30, 2022, to be paid on Jan 3, 2022, to the depositors registered in the record of depositors at the close of business on Dec 6, 2021.
"Moving forward, the company sees demand to continue to increase but global glove selling prices are decreasing. The demand for gloves as a PPE remains strong as the world continues to fight the COVID-19 pandemic.
"In light of this, we expect the demand to remain buoyant beyond 2021," it said.
Supermax had completed the commissioning of the remaining production lines in Block B of Plant #12 in the last quarter of the calendar year (CY) 2020, adding 2.2 billion to the group's annual installed capacity.
"We are seeing full quarter contributions since the first quarter of CY2021 and going forward.
"The company is currently building five glove manufacturing plants concurrently and scheduled for completion progressively," it said.
The new plants will add 22.25 billion new capacity bringing the group's total capacity to 48.42 billion gloves when they are fully commissioned.
The group would invest a total capital expenditure of RM1.39 billion for the new plants.
On its contact lens division, the group has continued to progress well in this business and is looking forward to continuous and sustained growth in the years ahead.
At close yesterday, shares of Supermax rose four per cent to RM1.82 with 14.10 million shares transacted.
 - Bernama
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