KUALA LUMPUR, Oct 28 — Supermax Corporation Bhd’s net profit for the first quarter (Q1) ended September 30, 2020 soared to RM789.52 million from RM24.75 million recorded in the same period a year ago.
Revenue jumped 265.6 per cent to RM1.35 billion from RM369.94 million previously.
In a filing with Bursa Malaysia yesterday, the glove manufacturer said the better performance was mainly contributed to, among others, growth in global demand for medical and other personal protective equipment, and increased sales from the additional production capacity of the newly commissioned lines at Plant #12 Block A lines.
It said the stronger results were also driven by the increase in average selling prices each month which started in March 2020 for both its manufacturing and distribution divisions and higher percentage of the company’s capacity and global sales to end-users.
Supermax said as of the quarter under review, its cash and bank balances amounting to RM2.36 billion, mainly due to high collections from increased sales whereby customers pay between 30 per cent and 50 per cent deposits in advance to secure supply.
“Our products are sold to over 165 countries and we are currently exporting 58 per cent of production under our own brands via our own distribution centres and 40 per cent through independent distributors. The remaining two per cent is for original equipment manufacturing production.
“Due to the current robust demand, we are taking the opportunity to build new relationships with new customers and distributors in anticipation that they will continue with repeat orders post-pandemic,” it said.
In terms of capacity expansion in Malaysia, the company has allocated RM1.39 billion for capital expenditure (capex) to build five glove manufacturing plants between now and 2022, which would yield additional production capacity of 22.25 billion, bringing total gloves to 48.42 billion pieces by end-2022.
Supermax has also proposed to widen the shareholder’s structure base via a dual listing on the Singapore Exchange (SGX), expand and diversify the shareholders base and pursue growth opportunities by providing additional channels to raise funds, if necessary.
“The proposed SGX listing is still at an initial stage and has not been finalised.
“More details will be made available in due course, if and when the board finalises the plan for, and approves, the proposal,” it added.