Mainboard-listed Riverstone Holdings, the manufacturer of cleanroom gloves, says net profit for the three months ended 30 June 2010 (2Q 2010) grew 43% to RM9.7 million ($4.1 million) from RM6.8 million in 2Q 2009.

Riverstone says group revenue rose 43% to RM54 million on continued strong demand for cleanroom and healthcare gloves.

Gross profit rose 40% from RM11.2 million to RM15.7 million and gross margins fell slightly from 30% to 29% on the back of higher raw material prices.

Other income declined by 12% to RM0.2 million due to lower interest income.

Comparing the increase in group revenue, selling and distribution expenses and general and admin expenses rose by a lower 31%, from RM3.4 million to RM4.5 million. This was due to better operating efficiencies and higher productivity achieved.

Other operating expenses halved to RM0.3 million, mainly due to a net foreign exchange gain of RM0.4 million compared to a net foreign exchange loss of RM0.1 million in 2Q 2009.

2Q 2010 pretax profit rose 51% to RM11 million. Effective tax rate of 11.8 % was higher than the 7.1% a year ago, due to reduced tax concessions at certain overseas subsidiaries.

For the six months ended 30 June 2010 (1H 2010), net profit expanded 135% to RM20.2 million while group revenue rose 68% to RM 106.8 million.