[ad_1]
KUALA LUMPUR: Careplus Group Bhd
reported a strong set of financial results in the third quarter ending September 30, 2020, as its profitability and revenue increased due to strong demand for gloves due to the ongoing Covid-19 pandemic.
On Friday, it reported that its net profit rose to RM42.85 million, which contrasts with a net loss of RM4.93 million a year ago. Their income of RM122.70 thousand was 45.5% higher than RM84.34 thousand a year ago. Earnings per share were eight sen compared to loss per share of 0.93 sen.
“The group’s income has increased thanks to a higher selling price and better production capacity. Group profit before tax and profit attributable to business owners improved significantly by 890.17% and 968.23% respectively, ”he said.
Careplus said the strong revenue was due to higher glove sales, higher utilization rate and higher sales prices as a result of increased demand due to the pandemic. His net profit included a 50% share of the profits made from the joint venture between Careplus M and Ansell.
During the nine months, he said that revenue increased 35% to RM346.30 thousand from RM256.38 thousand in the corresponding previous period.
“This is mainly due to the increase in sales prices derived from the increase in demand due to the Covid-19 pandemic and higher sales,” he said.
Its net profit of RM80.21 thousand compared to the net loss of RM6.53 thousand a year ago was due to higher sales volume, average selling price and better production efficiency.
It included a one-time gain of RM15.4 million from the sale of 50% of the equity in Careplus M for the joint venture with Ansell in the second quarter. A higher tax provision of RM8.85 thousand is foreseen as a result of higher earnings
On the outlook, Careplus said it was running 29 lines with an annual capacity of 4.62 billion pieces of gloves.
“Our goal is to install four new lines by the end of this year, another 15 new lines by mid-2021, with an additional nine lines in the planning stage to be completed by the end of 2021.
“As a result, the group will have 57 production lines with an annual capacity of 10.5 billion pieces of medical and surgical gloves by the end of 2021.
“The group has also implemented to increase surgical glove packaging facilities from 72 million pairs to 288 million pairs per year by the end of 2021.
“We will invest RM10 thousand to automate our new lines and reduce our dependence on production workers. At the same time, we will be renovating our newly purchased budget hotel to become a workers’ shelter (pending approval by the authorities) to attract more local workers to join us, ”he said.
[ad_2]
