SINGAPORE (Feb 22): Glove manufacturer Riverstone Holdings posts a 5.0% decline in earnings to 34.2 million ringgit ($11.5 million) for the 4Q ended December, from 36.0 million ringgit a year ago.

This was mainly attributable to other operating expenses amounting to 2.7 million ringgit in 4Q17, compared to other operating income of 2.0 million ringgit a year ago, due to a net foreign exchange loss and fair value loss on derivatives.

This brings full year earnings to 129.3 million ringgit in FY17, up 7.4% from 120.4 million ringgit a year ago.

4Q17 revenue grew 15.1% to 210.7 million ringgit, from 183.0 million ringgit a year ago.

This was the result of a ramp up in orders for both cleanroom and healthcare gloves.

Other income nearly trebled to 2.2 million ringgit in 4Q17, from 0.8 million ringgit a year ago, mainly due to higher interest income and insurance claim.

General and administrative expenses rose 26.0% to 6.4 million ringgit during the quarter, from 5.1 million ringgit a year ago, mainly due to increased expenditure in staff benefits.

As at end December, cash and cash equivalents stood at 114.3 million ringgit.

The board has recommended final dividend of 5.70 sen per share for the period, close to 10% higher than the final dividend of 5.19 sen per share a year ago.

Together with an interim dividend of 1.30 sen per share paid earlier, this brings total dividend for the year to 7.0 sen per share.

“Both our top and bottom line achieved all-time high results since our company’s listing back in 2006,” says Wong Teek Son, executive chairman and CEO of Riverstone.

“While recognising that volatile raw material prices and foreign exchange fluctuations continue to weigh on the company, we continue to strive and achieve better management of our costs so as to reduce the impact of these external factors,” he adds.

Looking ahead, Wong says the added capacity from the successful implementation of Riverstone’s Phase 4 expansion plans at the end of 2017 will allow the group to capitalise on the burgeoning global demand for both cleanroom and healthcare gloves.

Shares of Riverstone closed flat at $1.04 on Thursday.

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