Supermax reported its full year 2023 earnings ending June 30 with the group reporting a revenue of RM821 million for 2023 dropping 65% from RM2.2 billion it achieved in 2022. However, the group reported a loss of RM179 million compared to a profit of RM757 million it generated in the preceding year.
The group attributed the performance to a challenging operating environment that still continues and has seen the group’s
revenue for the quarter declined 25.6% to RM 223.4 million from RM 300.2 million a year ago; and losses recorded compared to profits previously. The weaker performance is mainly due to the lower glove average selling prices (ASPs) and rising costs.
Among the main factors cited for the decline include, average selling prices (ASPs) in the current quarter are lower compared to a year ago as the glove market continues to consolidate under the prevailing demand/supply imbalance situation. Loss of sales from a major market as the Withhold Release Order (WRO) imposed by the US Customs and Border Protection (USCBP) in October 2021 remains in place. Lower demand in the broader global market as buyers continue to wind down their over-stocked positions.
Increased operating costs including high energy/utilities costs (natural gas, electricity and water)
Compared to the preceding quarter, the Group’s revenue was higher for the 2nd consecutive quarter,
