Riverstone Holdings AP4 has reported earnings of RM314.4 million ($94.8 million) for the FY2022 ended Dec 31, 2022, 77.8% lower than the previous year’s earnings of RM1.42 billion.
The lower y-o-y earnings were attributed to the normalisation of average selling prices (ASPs) and higher cost of sales. Despite the industry headwinds and inflationary pressures, the group says its results are still better than its pre-Covid-19 levels.
The group’s earnings for the 4QFY2022 fell by 62.1% y-o-y to RM42.0 million due to the lower ASPs and higher cost of sales.
Revenue for the FY2022 fell by 59.1% y-o-y to RM1.26 billion.
At the same time, gross profit fell by 76.4% y-o-y to RM450.3 million as its gross profit margin (GPM) fell by 7.5 percentage points y-o-y to 30.1% as a result of the lower ASPs and higher cost of sales.
Other income rose by 38.3% y-o-y to RM25.1 million due to higher interest income from fixed deposits.
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As at Dec 31, 2022, cash and cash equivalents stood at RM1.07 billion.
The group has declared a final dividend of 10 sen per share and a one-tier special interim dividend of 8 sen per share. Together with the first two interim dividends, the group’s total dividend for the FY2022 stands at 34 sen per share. This is down from FY2021’s total dividend payout to 48 sen.
“Adverse performance in FY2022 reflected typical cyclical weakness for medical glove industry with demand and average selling prices normalising from Covid-19 peaks. Despite the challenging market environment, the group re-adjusted its production model and steadily shifted its focus towards cleanroom segment advancement,” says Wong Teek Son, executive chairman and CEO of Riverstone.
“As a leading and evolving manufacturer in the glove industry, we firmly believe that our emphasis on research and development (R&D) to better meet customers’ requirements will put us on an advantageous position to fuel our growth in the cleanroom sector, thereafter enabling us to navigate through the current difficulties smoothly,” he adds.
Shares in Riverstone Holdings closed 3 cents lower or 4.44% down at 64.5 cents on Feb 23.
