Supermax joins Big Four glove makers to usher in record quarterly profit

SUPERMAX Corp Bhd saw its net profit for 2Q FY2021 soared almost 3,500% year-on-year (yoy) to an all-time high of RM1.08 bil (2Q FY2020: RM30.02 mil) on the back of a revenue spike of almost 420% yoy to RM2 bil (2Q FY2020: RM385.5 mil).

With this stellar performance, the group achieved superior earnings before interest, taxes, depreciation, and amortisation (EBITDA), pre-tax profit and net profit margins of 70.8%, 69.9% and 54.0% respectively in 2Q FY2021, according to the glove maker.

Supermax also declared an interim single tier dividend of 3.8 sen/share for the current financial year ending June 30, 2021 to be paid on Feb 26.

On a quarterly basis, the group’s net profit and revenue grew by 33% (from RM812.48 mil in 1Q FY2021) and 48% (from RM1.35 bil in 1Q FY2021).

For the cumulative six-month period ended Dec 31, 2020, Supermax’s net profit spiralled to RM1.89 bil from RM54.98 mil a year ago while its revenue spiked to RM3.35 bil from RM755.44 mil.

According to Supermax, the group’s cash & bank balances increased to RM3.7 bil as of Dec 31 last year from RM2.36 bil as of Sept 30, 2020.

The group attributed its sterling performance to an exponential increase in demand globally for medical gloves & other personal protection equipment (PPEs) following the global outbreak of the COVID-19 pandemic, increase in the group’s production capacity and increase in average selling prices for both the manufacturing and distribution divisions.

There was also an increase in the percentage of the group’s capacity & global sales to end-users including sales to governments and government agencies of various countries.

The company currently export 58% of production under its own brands via its own distribution centres and 40% through independent distributors. The remaining 2% is for original equipment manufacturer (OEM) production.

Its products are sold to over 165 countries, the largest contributor being the Americas region which contributed 51% of revenue in FY2020 while Asia/Oceania and Europe each contributed 23% to FY2020 revenue.

In terms of product segmentation, 68% of its products comprised nitrile powder free gloves, followed by latex powder free (25%), powdered latex (5%) and surgical gloves (2%). – Jan 29, 2021

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