KUALA LUMPUR: Rubberex Corporation (M) Bhd almost tripled its net profit to RM64.66 million in the second quarter (Q2) ended June 30, 2021 from RM22.96 million recorded in the same quarter a year ago.
Rubberex managing director Khoo Chin Leng said despite signs of glove prices gradually easing in recent weeks, demand for gloves, specifically disposable gloves, was expected to remain persistent at the forefront of protection, safety and hygiene.
Its revenue in the same quarter surged to RM176.61 million from RM88.1 million.
The company's earnings per share in the quarter was 18.2 sen, a credible 370.3 per cent improvement year-on-year from 3.87 sen previously.
For the six-month period, Rubberex' net profit surged almost five-fold to RM151.23 million from RM32.22 million, while revenue more than doubled to RM351.85 million from RM154.53 million.
Rubberex recently completed a private placement of 83.2 new shares, which were listed on Bursa Malaysia earlier this month, enlarging its paid-up issued shares to 915.5 million.
The total net proceeds raised of RM66.1 million have been earmarked for further expansion into nitrile disposable gloves production lines at a new manufacturing site in Lahat, Perak.
Rubberex sole largest shareholder Datuk Eddie Ong Choo Meng said glove business was still very much profitable and rewarding.
"We envision an additional 7.5 billion pieces of gloves coming on-stream by end of next year from this new plant, from the current 2.5 billion pieces to 10 billion pieces of disposable gloves produced by Rubberex annually - a commendable growth rate of 300 per cent.
"With positive cash reserves and very minimal gearing, the group is well-positioned for this next phase of development."
Ong said Rubberex would strengthen its presence in the global market and capitalising on its years of experience as an established glove player, the higher capacity and sales to put it on par with some of the well-respected peers in the industry.