SUPERMAX Corp Bhd (7106), the country's second largest rubber glove maker, said its fourth-quarter net profit rose almost 30-fold on strong global demand, increased output from refurbished lines and higher prices commanded for rubber gloves sold.
Net profit for the three months ended December 31 2009 rose to RM44.1 million, from RM1.5 million in the year-ago period.
Revenue increased 7.4 per cent to RM196.4 million. Earnings per share were 16.55 sen versus 0.56 sen.
It also proposed a tax-exempt final dividend of 8 per cent per share of 50 sen for the fiscal year 2009 amounting to RM10.8 million and special tax exempt dividend of 9 per cent amounting to RM12.2 million.
Supermax said the management had resolved to focus on certain key areas including receivables management, inventory management, productivity management and financial management at the beginning of 2009 and the concerted efforts put in have yielded strong results.
"In addition, the group has also been focusing on producing high margin products resulting in higher manufacturing profits in the current quarter," it told Bursa Malaysia yesterday.
Aside from higher manufacturing income, the group also benefited from improvements in its distribution income, as reflected in higher profit contributions from its associate companies.
It also benefited from the favourable foreign exchange translation as the currencies of the countries in which the associate companies operated had all appreciated against the US dollar.
For the 12-month period, Supermax net profit jumped almost three-fold to RM129.7 million from RM47 million in the previous year.
Supermax said the rubber glove industry continues to be on a strong growth path despite the current global financial challenges and global economic uncertainties.
Ongoing refurbishment works as well as the construction of its new Meru plant with added capacity of 2.3 billion pieces of gloves per year, is also expected to contribute to the group's performance going forward.
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