PETALING JAYA: ES Ceramic Technology has seen strong earnings growth, thanks to higher average selling prices.
The maker of handformers for the rubber glove industry saw its net profit jump to RM9.4mil in the first quarter ended Aug 31, 2021, from RM3.2mil in the corresponding quarter a year ago. Turnover was up at RM25.5mil compared with RM11.9mil previously.
However, the group said its quarter-on-quarter results were affected by the strict Covid-19 curbs during the three-month period under review.
Both sales and profit declined by about 40% from the immediate preceding quarter.
“This was in tandem with the decrease in revenue and production output due to Covid-19 infection cases and factories shutdown,” ES Ceramic said in a filing with Bursa Malaysia.
Despite the challenging outlook, the company said the prospects for growth in the rubber glove industry are positive as the industry is expected to continue to be driven by the growth in the global and domestic healthcare industry as one of the essential item in the medical supplies.
“The company will continue to execute its business strategies to capitalise and strengthen its position in the industry whilst adopting prudent cash flow management to meet its financial commitments and obligations,” it said.