KUALA LUMPUR: Supermax Corp Bhd
‘s net profit tumbled 95.5% to RM47.84mil in the second quarter ended Dec 31, 2021 (2Q22) from RM1.05bil a yr in the past.
Its income fell by 73.8% to RM 523.54mil in comparison with nearly RM2bil in the corresponding quarter a yr in the past, primarily resulting from common promoting costs (ASPs) and demand coming off the highs recorded a yr in the past when the worldwide Covid-19 pandemic pushed demand was on a pointy upward trajectory.
“Sales was also impacted to an extent following the imposition of the Withhold Release Order (WRO) by the US Customs and Border Protection (USCBP) in October 2021,” Supermax stated in the notes accompanying its outcomes.
The glovemaker stated its profit margins have been considerably impacted consequently. Its Ebitda, pretax profit and net profit margins have pulled again sharply in comparison with a yr in the past.
For the primary half to Dec 31, 2021, Supermax’s net profit fell 62.88% to RM686.37mil from RM1.85bil. Revenue fell 40.94% to RM1.98bil from RM3.35bil a yr in the past.
Supermax expects to see a continued normalisation in the rubber glove enterprise as ASPs and demand proceed to say no from the highs seen on the peak of the Covid-19 pandemic.
“However, as the Covid-19 pandemic moves into an endemic phase, the structural shift triggered by the pandemic will see demand remain at a higher level compared to the pre-pandemic period and resume a longer term upward trend once a period of consolidation is over,” it stated.
Supermax is at present constructing 5 glove manufacturing crops concurrently and scheduled for completion progressively.
The new crops will add 22.25 billion new capability bringing the group’s complete capability to 48.42 billion gloves when they’re totally commissioned.
“The Supermax group would invest a total capital expenditure of RM1.39bil for the new plants,” it stated.
