Glovemaker Riverstone Holdingshas reported a lower net profit of RM56.4 million ($17.20 million) for the 1QFY2025 ended March 31, 2025, down 21.8% y-o-y.
Earnings per share for 1QFY2025 came in at 3.81 sens, down 21.8% y-o-y.
The group’s revenue for the reporting period came in 1.1% y-o-y higher to RM252.3 million. This was driven by higher sales volume for healthcare gloves and a stable contribution from the cleanroom segment. However, on a q-o-q basis, revenue decreased 9.3%.
The company’s gross profit declined 15.7% y-o-y to RM82.2 million for 1QFY2025 with gross profit margin dropping by 6.5 pts to 32.6%.
The lower margin was due to higher raw material costs, depreciation of US dollar against Malaysian ringgit, coupled with a product mix shift towards generic healthcare gloves in response to market demand dynamics.
Other income declined by 23.9% y-o-y to RM5.9 million for 1QFY2025, largely attributable to lower interest income from fixed deposits. In addition, other operating expenses rose to RM1.4 million from an operating income of RM0.7 million for 1QFY2024, mainly due to net foreign exchange loss.
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The board has recommended an interim dividend of 3 sen, translating to a dividend payout ratio of 78.7% for the period under review.
Shares in Riverstone closed 0.5 cents higher or 0.538% up at 93.5 cents on May 7.
