PETALING JAYA: Supermax Corp Bhd’s net profit for its fourth quarter ended June 30, 2021 more than doubled to RM958.71 million from RM398.83 million in the same quarter of the previous year on the back of strong demand due to the Covid-19 pandemic which saw higher sales from additional production capacity and continued increase in average selling prices (ASP) from March 2020.
Similarly, its revenue for the quarter more than doubled to RM1.88 billion from RM929.12 million reported previously.
For the full financial year ended June 30, 2021, its net profit saw a sevenfold increase to RM3.81 billion against RM524.8 million in the preceding financial year.
The group’s revenue for the financial year stood at RM7.16 billion,a more than threefold increase from RM2.13 billion previously.
Supermax declared a special single-tier dividend of 15 sen per share to be paid on Sept 30.
Supermax believes demand for gloves will not see a sharp drop with the rollout of Covid-19 vaccine due to the structural change in consumption given the heightened healthcare and hygiene awareness.
It noted that the surge in demand has led to new players and more capacity in the market, which have led to a decrease in glove prices.
On the whole, Supermax expects demand to remain buoyant beyond 2021.