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KUALA LUMPUR (November 20): Rubberex Corp (M) Bhd’s net profit for the third quarter ended September 30, 2020 increased 13 times to RM 39.52 million from RM 3.11 million in the corresponding quarter last year, as demand for nitrile gloves soared. in the middle of the pandemic.
Revenue for the quarter increased 75% to RM 109.03 million from RM 62.23 million the previous year.
“The improved earnings were primarily due to an overall increase in demand for the group’s products, namely disposable household, industrial and nitrile gloves due to the Covid-19 pandemic since the beginning of this year, average glove sales prices higher rates, favorable exchange rates and improved production efficiencies, “Rubberex said in a presentation to the exchange.
For the nine cumulative months ended September 30, 2020, net profit increased 860% to 71.74 million RM from 7.47 million a year earlier, while revenue increased 57% to 263.56 million ringgit from 168.33 million ringgit.
Going forward, the group said it is focused on the nitrile disposable gloves division, which is currently operating at full capacity, and said its performance is expected to continue through the remainder of 2020, noting that its order book has been filled to the end. until the second half of 2021.
“The group’s next capacity expansion is underway and is expected to contribute to the group’s earnings in the fourth quarter of 2020 onwards,” he said.
In a separate filing, Rubberex said that its wholly owned subsidiary Rubberex Alliance Sdn Bhd signed a purchase agreement with Prisma Lengkap Sdn Bhd to acquire two parcels of land in Perak for RM11.39 million.
The two parcels comprise a 35,260-square-meter tract and another 12,839-square-meter tract in Sungai Terap, Kinta, Perak to be purchased for RM8.35 million and RM3.04 million respectively, to be financed through internally generated funds.
The group said it intends to use the lands to expand its manufacture and sale of disposable nitrile gloves.
“The proposed acquisition is expected to contribute positively to the profits of the Rubberex group, as the demand for gloves remains strong amid the Covid-19 pandemic,” he said.
The group expects to complete the acquisition in the first quarter of 2021, barring unforeseen circumstances.
At 12.30pm, Rubberex was up 14 sen or 7.41% to RM2.03, giving a market capitalization of RM1.69 billion.
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