SINGAPORE (Nov 8): Malaysian glove producer UG Healthcare has announced earnings of $0.9 million for 1Q18, up 8.8% from $0.8 million a year ago on higher revenue.
Revenue for the 1Q ended Sept rose 16.7% to $18.3 million from$15.7 million previously.
This was mainly due to an increase in the volume of gloves produced and sold, resulting from full commercial production of the new production lines and higher sale through expansion of its distribution networks.
Topline was further bolstered by higher average selling price (ASP) of UG Healthcare’s products which have increased as compared to the ASP in 1Q17, adds the group in its regulatory filing on Wednesday.
In line with the increase in revenue, cost of sales grew 13.9% to $15.3 million from $13.4 million in 1Q17.
Gross profit margin increased to 16.3% in 1Q18 from 14.2% in 1Q17 due to slightly lower raw material price and higher ASP, resulting in a $0.8 million increase in gross profit to $3 million compared to the same quarter a year ago.
UG Healthcare says its current expansion plan includes construction of a new production facility on an adjoining piece of land to its existing factory, with commercialisation of the production lines expected by April 2018.
These are expected to increase annual production capacity by another 500 million gloves per annum, which will be progressively rolled out to achieve a total of 2.9 billion gloves in production capacity by end of FY18.
The group intends to increase its production capacity prudently, while it concurrently strengthens and builds its marketing and global distribution network infrastructure, as well as broaden its range of proprietary ‘Unigloves’ brand of products.
Shares in UG Healthcare closed 2 cents higher at 22 cents on Wednesday.
