For the period ended March 31, the company recorded revenue of RM238.0 million, a 40.8% y-o-y decrease from RM402.3 million in 1QFY2022 million due to lower average selling prices.

Its cost of sales decreased to RM176.0 million in 1QFY2023 from RM247.8 million the year before.

As a result of the relatively higher cost of sales, Riverstone’s gross profit margin contracted from 38.4% to 26.0% over the same period. Gross profit dropped 59.9% y-o-y from RM154.5 million in 1QFY2022 to RM61.9 million in 1QFY2023.

As at March 31, the company held RM990.5 million in cash and cash equivalents.

Riverstone says it intends to utilise the strong cash reserve progressively through consistent investment into its research and development (R&D) initiatives and strategic expansion plans.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/ihh-healthcare-doubles-earnings-rm5321-mil-3qfy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>IHH Healthcare doubles earnings to RM532.1 mil for 3QFY2023</a>

No dividends have been announced for the period.

Despite the ongoing consolidation in the generic healthcare glove sector, Riverstone says its results have improved on a q-o-q basis on the back of steady demand in cleanroom gloves.

On a q-o-q basis, revenue was up 1.2% while net profit jumped 11.2%.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/kimly-earnings-72-y-o-y-365-mil-fy2023-confectionery-business-disposal?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Kimly earnings up 7.2% y-o-y to $36.5 mil for FY2023 from confectionery business disposal</a>

Executive chairman and CEO Wong Teek Son says: “Backed by our diversified product portfolio and favourable product mix, we once again reported decent profit in 1QFY2023. In particular, customer stickiness in the cleanroom gloves segment has allowed us to consistently deliver strong results across industry cycles.”

“Moving forward, we will continue to increase our exposure in customised products such as specialised healthcare gloves and reinvest in our cleanroom gloves segment to maintain our market leadership position,” Wong adds.

Shares in Riverstone closed 1 cent or 1.68% down at 58.5 cents on May 8.

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