Riverstone’s Net Profit Rises 3.7% to RM70 Million
Riverstone’s Revenue Jumps 21% to RM278 Million
Riverstone, a leading glove maker, has reported a 3.7% increase in net profit to RM70 million (S$21.2 million) for the three months ended December 2024, driven by optimism in the semiconductor industry.
Revenue Growth Driven by Cleanroom Glove Segment
The company’s revenue for the quarter rose 21% to RM278 million, bringing its FY2024 revenue to RM1.1 billion. The revenue growth was driven by the cleanroom glove segment, which benefited from recovery in the semiconductor industry, as well as new client acquisitions.
Efforts to Add New Cleanroom Clients
Efforts to add new cleanroom clients "would bring in additional revenue streams upon the completion of the qualification process in the near future", said Riverstone CEO Wong Teek Son.
Healthcare Glove Segment Also Sees Improvement
The company’s healthcare glove segment also improved with the "normalisation" of post-pandemic inventory.
Gross Profit Margin Expands 4.1 Percentage Points
The company’s FY2024 gross profit margin expanded 4.1 percentage points to 36.4%, driven by efforts to move its product mix towards high-end customised products.
Dividend Announcement
In view of "healthy operating cash flow", Riverstone declared a final dividend of RM0.08 per share, as well as a special interim dividend of RM0.04 per share. Combined with an earlier payout of RM0.12, the total dividend for FY2024 is RM0.24 per share, payable at a date to be determined.
Challenges Ahead
However, the company is also facing challenges such as "price competition, currency fluctuations, volatile raw material prices, and increased production costs".
Conclusion
Riverstone’s strong performance in the quarter was driven by its cleanroom glove segment, which benefited from recovery in the semiconductor industry and new client acquisitions. The company’s efforts to add new cleanroom clients and move its product mix towards high-end customised products have also contributed to its revenue growth.
Frequently Asked Questions
Q: What was Riverstone’s net profit for the three months ended December 2024?
A: RM70 million
Q: What was Riverstone’s revenue for the quarter?
A: RM278 million
Q: What is the total dividend for FY2024?
A: RM0.24 per share
Q: What are the challenges facing Riverstone?
A: Price competition, currency fluctuations, volatile raw material prices, and increased production costs.
