KUALA LUMPUR: Supermax Corp Bhd’s net profit increased 42.8 per cent to RM27.9 million in the first quarter (Q1) ended September 30, 2017 from RM19.54 million recorded in the same quarter last year.
In a filing to Bursa Malaysia today, the latex glove conglomerate said the improved profitability recorded for the quarter was due to efforts taken to improved efficiency and productivity, including the refurbishment of the older lines and streamlining of work processes.
Its revenue in the same quarter increased 15.9 per cent to RM312.02 million from RM269 million, due to higher output recorded from refurbishment work done, higher average selling prices in response to increased raw material prices as well as a stronger US dollar against the ringgit.
Supermax said global demand for both natural rubber and nitrile gloves remains strong with healthcare awareness continuing to rise, increasing regulation of the healthcare sector and ever higher healthcare spending in both the public and private sectors driving demand growth.
These positive factors continue to augur well for the company and the industry as a whole, it added.
“In line with our continuous improvement efforts, we are refurbishing, rebuilding and modernising our older manufacturing plants to gain maximum efficiency in our production capabilities,” it said.