Medi-Flex says it registered sales revenue of RM29.03 million ($12.08 million) and a profit after tax of RM1.07 million for the first quarter ended Nov 30 2010 (1QFY2011).

In comparison, the group’s 1QFY2010 revenue was RM24.31 million while profit after tax was RM1.79 million.

Despite posting higher revenue in 1QFY2011, Medi-Flex’s profit after tax was lower mainly due to higher raw material prices, i.e. latex prices and the weakening of the US dollar against the ringgit.

Latex prices were high at RM9.42/kg as at Dec 13, 2010. Meanwhile, the US dollar depreciated to a low of 3.08 versus the ringgit during the quarter.

Nevertheless, with a healthy balance sheet of a net cash position of RM10.68 million and free from bank borrowings as at Nov 30, 2010, Medi Flex hopes to position itself to achieve better performance in the future.

For the financial year ended Aug 31, 2010, Medi-Flex managed to return to profitability after several years of losses following successful restructuring exercise undertaken by the new management when they took over in 2007.