Riverstone Holdings has posted 33.1% lower revenue y-o-y for the 9MFY2023 ended September. At RM222.8 million ($64.15 million), revenue for 3QFY2023 ended September is 0.6% lower q-o-q and 17.5% lower y-o-y.
That said, gross profit and profit before tax grew 20.0% and 19.3% q-o-q in 3QFY2023, reaching RM77.8 million and RM73.5 million respectively.
The manufacturer of specialised cleanroom and healthcare gloves posted net profit of RM59.3 million for 3QFY2023, 26.5% higher q-o-q but 6.6% lower y-o-y.
Riverstone has declared an interim dividend of 5 sen per share for 3QFY2023. Year to date, the group has either paid or declared an interim dividend of 10 sen per share, translating to a dividend payout ratio of 97% based on 9MFY2023 net profit.
In a Nov 3 bourse filing, Riverstone says demand from the consumer electronics industry continued to be slow due to the sector downturn. However, new clients onboarded for customised healthcare gloves negated the impact.
Gross profit increased by 20.0% q-o-q while gross profit margin expanded by 6.0 percentage points to 34.9% over the same period. The marked increment was due to a stronger product mix with a higher proportion of customised healthcare products being shipped out, says management. “Additionally, raw material costs have also trended downwards during the period under review.”
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Wong Teek Son, executive chairman and chief executive officer of Riverstone, says ongoing efforts in product customisation has continued to bear fruit, with increased orders from healthcare gloves making up for the softer demand for cleanroom gloves in 3QFY2023.
Wong adds: “We are upbeat about FY2024 with the expected recovery of cleanroom gloves driven by an improved consumer electronics sector. At the same time, we continue to see customer expansion opportunities for our customised range of products.”
Shares in Riverstone closed 2 cents higher, or 3.5% up, at 59 cents on Nov 3.
