Supermax Corporation Berhad (Supermax) has released its first-quarter results for the financial year ending 30 June 2021 (Q12021), achieving another quarter of record profits amid higher average selling prices and continued robust demand.
For Q12021, the company’s revenue surged to RM1.35 billion, increasing by 265.6 percent as compared to the corresponding quarter a year ago. The Profit Before Tax (PBT) increased by 3,134.2 percent to RM1.049 billion and Profit After Tax (PAT) soared by 3,155.1 percent to RM812.49 million.
With this stellar performance, Supermax achieved superior EBITDA, PBT, and PAT margins of 78.8 percent, 77.6 percent, and 60.1 percent, respectively in Q12021. Supermax’s revenue and PAT for this quarter grew by 45.6 percent and 99.0 percent, respectively, as compared to the preceding quarter being Q42020.
Supermax’s already sound financial position has strengthened dramatically, most notably to a net cash position with cash & bank balances amounting to RM2.36 billion as of 30 September 2020.
This is mainly due to high collections from increased sales where customers pay between 30 percent to 50 percent deposits in advance to secure supply.
Due to the current robust demand, Supermax takes the opportunity to build new relationships with new customers and distributors in anticipation that they will continue with repeat orders post-pandemic.
In terms of capacity expansion in Malaysia, Supermax has put in place expansion plans of building a total of 5 glove manufacturing plants between now and 2022. This will yield an additional production capacity of 22.25 billion making a total of 48.42 billion gloves by end of 2022.
The Supermax Group will invest a total capital expenditure of RM1.39 billion for the new plants. The vulnerability of disruption of the personal protective equipment (PPE) supply chains and over-dependence on imports is the primary concern of governments around the world.
Therefore, Supermax is reinvesting the earnings derived from distribution centres into the respective countries in particular in the United States and the United Kingdom.
Besides that, the Supermax Group has decided to enter into Face Mask Manufacturing in Malaysia and Canada. This is to complement the existing global supply chain that Supermax has built over the years.
Notably, Supermax has started delivering millions of masks to the Government in Canada since early October 2020. In this quarter, Supermax has witnessed an expansion in both their manufacturing and distribution contributions.