KUALA LUMPUR, Jan 29 — Supermax Corporation Bhd’s net profit hit a record high of RM1.06 billion in the second quarter ended December 31, 2020, surging by more than 35 times over the RM30.17 million recorded a year earlier due to higher average selling prices (ASPs) and continuous robust global demand for its products amid the pandemic.
In a filing with Bursa Malaysia today, the rubber glove maker said revenue also soared by 418 per cent to RM2.0 billion from RM385.50 million previously.
“The group’s sterling performance was mainly contributed by an exponential increase in demand globally for medical gloves and other personal protective equipment following the global outbreak of the Covid-19,” it said in a press statement.
Supermax also attributed the strong performance to the increase in the group’s production capacity and the increase in ASPs in both the manufacturing and distribution divisions.
An increase in the percentage of the group’s capacity and global sales to end-users, including sales to governments and government agencies of various countries, also supported the company’s performance for the quarter under review, it added.
Moving forward, Supermax expected glove demand and consumption would moderate as the Covid-19 vaccines were being rolled out in an increasing number of countries.
“The company believes that it (the reduction in demand) will likely be gradual and not sharp drop due to the structural change in consumption, such as new consumption, new customers and greatly heightened healthcare and hygiene awareness,” it said.
The company’s board of directors has declared an interim dividend of 3.8 sen per share for the current financial year ending June 30, 2021, to be paid on February 26 (no interim dividend last year). — Bernama
