Riverstone Q1 profit slides 21.8% to RM56.4 million despite higher revenue

[SINGAPORE] Glove manufacturer Riverstone on Wednesday (May 7) posted a profit of RM56.4 million (S$17.2 million) for the quarter ended Mar 31, 2025, sliding 21.8 per cent from RM72.2 million in the corresponding year-ago period.

This resulted in an earnings per share of RM0.0381, compared with RM0.0487 a year ago.

The lower profit is despite revenue rising 1.1 per cent to RM252.3 million, from RM249.5 million, said the company in a bourse filing.

The group’s top line for the quarter rose due to higher sales volume for healthcare gloves and stable contribution from the cleanroom gloves segment.

However, higher raw material costs and the depreciation of the US dollar against the Malaysian ringgit contributed to gross profit margin dropping 6.5 percentage points to 32.6 per cent in this quarter, said Riverstone.

A product mix shift towards generic healthcare gloves in response to market demand dynamics also resulted in the lower gross profit margin.

The group has declared an interim dividend of RM0.03 per share for the period under review, RM0.01 lower than the interim dividend per share of the corresponding year-ago period.

Executive chair and chief executive Wong Teek Son said: “We are seeing growing demand for generic healthcare gloves, in line with customer needs from the US.

“In response to the dynamic market environment, we have been adjusting our product mix since Q4 FY2024, and remain on track to commission three new healthcare production lines by the second half of FY2025 to support capacity needs.”

He added: “While the shift in product mix has led to near-term margin compression, we are committed to pushing out customised products in both business segments.”

Shares of Riverstone closed at S$0.935 on Wednesday, up S$0.005 or 0.5 per cent, before the announcement.