Supermax to benefit from weak Ringgit
KUALA LUMPUR: Supermax Corporation Bhd
posted earnings of RM19.75mil on the back of RM308.22mil in revenue for the third quarter ended March 31, 2017 and it was upbeat on the outlook for global demand for both natural rubber and nitrile gloves.
Announcing its results on Tuesday, it said the growth in demand was due to rising healthcare awareness, increasing regulation of the healthcare sector and ever higher healthcare spending in both the public and private sectors.
It rewarded shareholders with an interim dividend of 2.5 sen a share.
Supermax said its revenue was from the global sales of its natural rubber and nitrile rubber gloves. Revenue had risen on higher output, higher average selling prices in response to increased raw material prices as well as a stronger US dollar vs Ringgit.
“In terms of profitability, the group recorded earnings before interest, tax, depreciation and amortisation (Ebitda) and profit before tax (PBT) margins of 11.5% and 6.8% respectively.
“However, there was 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 as we launch our new contact lens products overseas,” it said.
Supermax said there would be additional expenses in the next 12 months to gain a greater share of the global contact lens market. But it said efforts were under way to improve the profit margins and efficiency levels.
When compared with the second quarter ended Dec 31, 2016, it said revenue rose by 30.2% (RM71.5mil) on the back of increased output from refurbishment works carried out, higher average selling prices in response to higher raw material costs; and stronger US Dollar vs the Ringgit.
However, the group has suffered some margin squeeze to Ebitda and profit before tax.
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