Supermax posts higher Q2 profit

2012/08/17

Supermax Corp Bhd posted a profit after tax of RM30 million for the second quarter ended June 30, 2012, up 32.5 per cent
from RM22.65 million in the same period previously.

Revenue decreased to RM232.10 million from RM237.92 million the year before, on the back of stronger demand, the company said in statement.

Compared to the corresponding quarter last year, Supermax sold about 18 per cent more rubber gloves but recorded a slight 2.4 per cent decrease in revenue due to lower average selling price as a result of lower raw material prices. 

"As anticipated, the prices of natural rubber (NR), the industry's main cost component, have continued to ease from its peak of close to RM11 per kg wet back in April 2011 to the RM7.2 level by end-2011," said Datuk Seri Stanley Thai, Executive Chairman and Group Managing Director of Supermax, in the statement.
"In view of the high volatility of NR latex prices, anticipation of lower manufacturing margins on Nitrile gloves and high volatility of foreign exchange currencies, for the earnings guidance for 2012 financial year, we aim to achieve a 20 per cent earnings growth from the previous year," he added.

Supermax had announced its National Distribution Headquarters for its United States operations which is expected to complete by the second quarter of 2013.

The group is also expected to expand its production capacity and grow its manufacturing facilities in Klang, Malaysia. -- Bernama