Rubberex 1Q net earnings hit historical high of RM86.6mil

KUALA LUMPUR: Rubberex Corp (M) Bhd's net profit for the first quarter ended March 31,2021, surged over nine times to a historical high of RM86.6mil from RM9.3mil in the previous corresponding quarter on the back of increased revenue.

Revenue for the quarter was RM175.2mil, a 164% increase over RM66.4mil in the same quarter last year.

The glove maker said in a statement that the profit included a RM5.9 gain from the dissolution of a subsidiary in Hong Kong.

Earnings per share in the quarter was 10.44 sen compared to 1.22 sen in the previous corresponding quarter.

"The demand for gloves and other personal protective equipment is still steadfastly strong and notwithstanding robust vaccination programs globally, disposable gloves remain persistent at the forefront of protection, safety and hygiene," said Rubberex managing director Khoo Chin Leng.

He added that all five double formers nitrile disposable glove production lines from the new factory had started operating since late last year and the total output had increased from one billion pieces to 2.5 billion pieces per annum.

On plans for the future, Khoo shared that Rubberex is poised for expansion at its new 11.9-acre manufacturing site in Lahat, Kinta District in Perak later this year.

The group's largest shareholder, Datuk Eddie Ong Choo Meng, added that in the immediate pipeline is the latest phase to install additional production lines capable of producing up to 7.5 billion pieces of nitrile disposable gloves annually by next year.

This represents a 300% boost from the current 2.5 billion pieces to 10 billion pieces.

"Rubberex is an established glove player in the industry and we are committed to strengthening our presence in the global market”, he said.
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