In its latest quarterly financial results, Rubberex posted a net profit of RM9.1 million, backed by revenue of RM64.2 million for the quarter ended December 31st
As for its full financial year, the group recorded RM185.6 million in net profits, an increase of RM54.4 million or 41.5% from RM131.2 million a year ago. Revenue also reached a historic high of RM511.0 million, surpassing the previous year’s contribution of RM415.1 million.
Group Managing Director, Mr. Khoo Chin Leng, explains, “The full effect of the Group’s latest expansion was reflected in 2021 when 1.5 billion pieces of new capacity came on-stream fortuitously at the beginning of the year. Overall, Rubberex also benefited from the higher ASPs and economies of scale derived from the additional capacity”.
The Q4 net profit of RM9.1 million represented a decline of 63.9% from RM25.2 million in the previous quarter owing to lower sales volume, continual easing of average glove selling prices (ASP), lower capacity utilization as well as slower incoming orders. While the enlarged glove capacities contributed by existing and new entrants in the market have also caused ASPs to slide, most notably in recent months, the Group remains focused on its nitrile disposable gloves division.
Mr. Khoo adds, “Reinforced by higher safety and health standards globally, Management expects glove demand to pick up and stabilize as we advance towards the endemic phase of COVID-19.” Echoing the resilience of the healthcare industry, he further shared that the Group’s capacity utilization would improve towards the second half of the year.
Rubberex’s earnings per share for the financial year stood at 21.79 sen, up by 33.4% or 5.45 sen from 16.34 sen at previous close. Owner of Rubberex and sole largest shareholder, Dato’ Eddie Ong Choo Meng asserts, “With a solid balance sheet and substantial cash reserves, the Group’s timed diversification into property investment via our venture into Empire City Mall is aimed at providing us with an alternative income stream.
