KUALA LUMPURL: Glove maker Careplus Group Bhd turned a huge profit in second quarter ended June 30 boosted by strong demand worldwide for the protective gear.
The number of Covid-19 infection worldwide continue to accelerate this week, with total confirmed cases rising above the 15.5 million people mark.
Careplus said the global pandemic caused by the Covid-19 virus have created an exponential increase in demand for medical gloves which have benefited many manufacturers.
For the three-month ended June 30, revenue climbed 37% to RM118.9mil, while net profit soared to RM36.3mi, or 6.7 sen a share.
Careplus said its net profit was lifted by a one-time gain of RM15.4mil from the disposal of a 50% equity interest in wholly-owned unit Careplus (M) Sdn Bhd to Ansell Ltd.
The deal was completed in May.
"The average selling prices have surged during the pandemic period which is expected to continue until vaccines have been developed and administered globally," Careplus said in a filing with Bursa Malaysia today.
It said while spot average selling price (ASP) remain high, the ASP for regular buyers is expected to increase in the coming quarter barring any significant change to current shortage of supply.
"The Group therefore expects strong positive results in this pandemic period and beyond," Careplus added.
Meanwhile, the worsening COVID-19 pandemic has accelerated the company's plan to increase the production capacity.
By end of this year, ten new production lines will be installed and commissioned, while another thirteen new production lines will be installed and commissioned next year.
"This will nearly double the total production capacity from 4.1 billion pieces to about 8.8 billion pieces by end of 2021 barring any interruption," Careplus said.
The Group will have a total of 50 production lines by end of 2021.
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