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Riverstone Holdings reports earnings of RM108.7 mil for the 1QFY2022, down 79.2%

Felicia Tan
Felicia Tan5/10/2022 7:10 PM GMT+08  • 2 min read
Riverstone Holdings reports earnings of RM108.7 mil for the 1QFY2022, down 79.2%
Wong Taek Son, executive chairman and CEO of Riverstone. Photo: The Edge Singapore
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Riverstone Holdings has reported earnings of RM108.7 million ($34.5 million) for the 1QFY2022 ended March, 79.2% down from earnings of RM522.7 million in the corresponding period the year before.

Revenue for the quarter fell by 61% y-o-y to RM402.3 million as demand for personal protection equipment (PPE), including the group’s glove products, have normalised post-Covid-19.

“This normalisation trend was evident since 4QFY2021 and is similar in 1QFY2022,” says the group in its May 10 statement.

The average selling prices (ASPs) for gloves have also come off their historic highs as seen in the 1QFY2021.

As a result, 1QFY2022 gross profit fell 78.2% y-o-y to RM154.5 million, while profit before tax (PBT) fell 78.9% y-o-y to RM144 million.

See also: Yongmao Holdings issues profit warning for 2HFY2022 ended March 31

However, Riverstone says its cleanroom gloves continue to remain in demand as the forecasted 13.6% growth of the worldwide semiconductor revenue could increase demand from its customers.

As at March 31, the group’s cash and cash equivalents stood at RM1.7 billion. According to the group, the money will be partly used for its expansion plans, which were delayed in 2021.

Looking ahead, the group says it will be entering into its next phase of expansion plans for its production lines on existing lane with Phase 7 ending in 2022.

The next phase will increase the group’s capacity by 1.5 billion pieces to 12.0 billion pieces of gloves annually.

See also: Grab narrows loss by 35% to US$435 million in 1QFY2022

“The global cleanroom gloves market is expected to grow at a CAGR of 7.7% as many industries require cleaner and better antistatic gloves for their manufacturing and contact needs,” continues the group’s statement.

“Riverstone continues to be a market leader in the cleanroom glove space, with a high barrier to entry due to the additional manufacturing steps and the stringent requirement,” it adds.

Wong Taek Son, executive chairman and CEO says, “Demand for cleanroom gloves continue to grow as more applications are being manufactured in a cleanroom environment. As a market leader for cleanroom gloves, we work hand-in-hand with our clients, who are global leaders in their respective fields, to develop cleanroom gloves to their very exacting requirements. We will continue to improve on our cleanroom glove production capabilities through research and innovation.”

Shares in Riverstone closed 0.5 cent lower or 0.66% down at 75 cents on May 10.

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