Riverstone Holdings has reported a 3Q20 revenue figure of RM482.3 million ($157.2 million) for 3Q2020, a jump of 92% as compared to the same period last year. 

The company said this is due to the surge in global demand for personal protection equipment amid the Covid-19 pandemic. 

It added the average selling price of the Riverstone’s healthcare examination gloves has maintained its “upward momentum” since June 2020, and its high-tech cleanroom gloves have also experienced “strong volume growth” and several increases in average selling price during this period due to robust demand. 

Riverstone highlighted while certain production costs such as packaging and raw material costs have risen during this period, the surge in average selling prices of glove products has led to a 389.6% y-o-y increase in gross profit to RM251.6 million for 3Q2020. 

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Correspondingly, the Group’s blended gross profit margin expanded 31.7 percentage points yoy to 52.2% for 3Q2020.

With cash and cash equivalents amounted to RM427.3 million as at the end of 30 September 2020, “the Group remains well-positioned to carry out its expansion plans to drive future growth, and weather the macroeconomic headwinds associated with the Covid-19 pandemic.” it said. 

Looking ahead, Riverstone’s expansion plans is on track to raise total production capacity by 1.5 billion pieces to 10.5 billion pieces of gloves annually by the end of 2020. 

It has commissioned five production lines which are currently in operation, with two more to be commissioned progressively over the next two months. 

In addition, seven more production lines will come online in 2021, with the first line of this
new phase ready in April 2021. This is expected to add up to 1.5 billion pieces of gloves to bring total annual production capacity by up to 12 billion pieces by 4Q2021

Riverstone said its current orderbook for the first half of 2021, as well as the new capacity provided by the seven new 2021 lines has been filled up, due to the strong demand for both healthcare and cleanroom gloves.

Executive Chairman and CEO Wong Teek Son remarked, “The company has in-place a clear expansion roadmap that will increase our production capacity by up to 1.5 billion pieces of gloves each year to a total of up to 15.0 billion pieces by end-FY2023, representing a growth rate of approximately 59% from our expected capacity of 10.5 billion gloves at the end of FY2020.”

“Our cleanroom glove segment has also experienced growth in demand from the technology and manufacturing industries, such as lenses, batteries and semiconductors… We remain positive that our diversified income streams will allow us to ensure earnings resiliency for sustainable growth over the longer term.” he added. 

Shares of Riverstone Holdings closed at $1.96, up 5.95% or 11 cents higher than its last close of $1.85.