Riverstone posts 5.8% rise in 2Q net profit to $4.2m

Riverstone Holdings, the manufacturer of specialised cleanroom and healthcare gloves, has reported a 21.4% rise in group revenue to RM65.5 million ($26.6 million) for the three months ended 30 June 2011 (2Q 2011). Net profit rose 5.8% to RM10.3 million.

Riverstone says sales of gloves in unit terms rose a healthy 49% in 2Q 2011. However, the weaker US dollar against the RM (down 7.4% y-o-y) resulted in revenue rising only 21.4% to RM65.4 million. Cost of sales however rose 29.4%, due largely to the 45% rise in nitrile prices, a key raw material. The rise in nitrile prices was due to the increase in the price of monomer especially butadiene. Gross profit edged up 1.9% to RM16.0 million.

The group says it also maintained a tight rein on other costs. Although total selling and distribution expenses, general and admin expenses and operating expenses increased 9.7% to RM5.3 million mainly due to increase in foreign workers levy, these expenses lagged the increase in sales. Group pretax profit was unchanged at RM11.0 million.

The group has cash and cash equivalents of RM35.9 million and nil borrowings.