Rubberex posts record 1Q earnings

by TMR / Pic by TMRGRAPHIC

RUBBEREX CORP (M) Bhd made a net profit rose 835% year-on-year (YoY) to RM86.6 million for the first quarter ended March 31 as revenue rose 164% YoY to RM175.2 million.

The record profit included a gain of RM5.9 million from the dissolution of a subsidiary company in Hong Kong, the glove maker noted in a release today. Earnings per share in the 1Q was 10.44 sen.

“The demand for gloves and other personal protective equipment is still steadfastly strong and notwithstanding robust vaccination programmes globally, disposable gloves remain persistent at the forefront of protection, safety and hygiene,” Rubberex MD Khoo Chin Leng stated.

He added all five double formers nitrile disposable glove production lines from the new factory had started operating since late last year and the total output had increased from 1.0 billion pieces to 2.5 billion pieces per annum.

Rubberex is poised for expansion at its new 11.9 acres manufacturing site in Lahat, Kinta District, Perak later this year. 

In the immediate period, the company intends to install additional production lines capable of producing up to 7.5 billion pieces of nitrile disposable gloves annually by next year and this will represent a significant 300% boost to current 2.5 billion pieces capacity.

Construction of factory buildings and fabrication of machineries will commence later this year with targeted mass production by the second half of 2022 and shall be financed by a combination of internally generated funds and bank borrowings. – TMR