KUALA LUMPUR: Rubber glove producer Supermax Corporation Bhd has achieved another strong quarterly financial performance, recording a net profit of RM958.71 million on the back of RM1.88 billion revenue in its fourth quarter for the financial year ended (FYE) June 30, 2021.
In comparison, its net profit and revenue for Q4 2020 were RM398.83 million and 929.12 million respectively, it said in a filing with Bursa Malaysia today.
The board of directors has declared a special single-tier dividend of 15 sen per ordinary share for the financial year ending June 30, 2021.
The entitlement date and the payment date of the dividend will be on Sept 10, 2021 and Sept 30, 2021, respectively.
Supermax said the performance was mainly due to the continued strong demand globally for medical gloves and other personal protective equipment (PPEs) following the global outbreak of the COVID-19 pandemic.
It said the demand for gloves and PPE remains strong as the world continues to fight the pandemic.
"New waves continue to hit countries around the world and continue to flare up even as more and more countries begin opening up their economic sectors and easing their standard operating procedures (SOPs).
"Since the start of the pandemic, we have seen and continue to see the emergence of new consumers and new consumption not previously seen prior to COVID-19," it said.
COVID-19 vaccines are being rolled out in an increasing number of countries, which is widely expected to cause glove demand and consumption to moderate.
Supermax believes that the moderation will likely be gradual and not drop sharply due to structural changes in consumption, such as a greatly heightened healthcare and hygiene awareness.
In view of the surge in demand, more new glove players are jumping onto the bandwagon, it noted.
In addition, current glove companies are increasing capacity on a large scale, especially from players who are public-listed companies based in China, Malaysia, and Thailand.
"As more new capacity is available in the market, global glove prices have begun to decrease. The glove prices have since dropped substantially. Currently, the spot market prices are very much lower than the contracted prices," it said.