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In a statement yesterday, Supermax said it has put in place expansion plans to build a total of five glove manufacturing plants between now and 2022.

PETALING JAYA: Supermax Corp Bhd has registered a stunning 3,090% year-on-year surge in net profit to RM789.52mil for the first quarter ended Sept 30, recording its highest-ever net profit margin of 60.1% during the quarter.

Its revenue hit RM1.35bil, mainly contributed by an exponential increase in demand globally following the outbreak of the Covid-19 pandemic.

According to a filing with Bursa Malaysia, the glove maker also saw an increase in average selling prices each month, beginning in March for both its manufacturing and distribution divisions.

“The groups’ performance was contributed by an increase in sales from the additional production capacity of the newly commissioned lines, business model through own brand manufacturing, as well as earnings contribution from exponential growth in demand, ” it said.

It also saw an increase in sales of other personal protective equipment (PPE) such as masks, sanitisers, gowns and face shields from certain overseas subsidiary companies and distribution centres.

As a result of high collections from increased sales where customers paid between 30% and 50% deposits to secure supplies, Supermax has a net cash position amounting to RM2.36bil as of Sept 30.

Its products are sold to over 165 countries and 58% of production under its own brands are exported via its distribution centres, with 40% through independent distributors, while the remaining 2% is for original equipment manufacturer production.

In a statement yesterday, Supermax said it has put in place expansion plans to build a total of five glove manufacturing plants between now and 2022.

“This will yield an additional production capacity of 22.25 billion, making a total of 48.42 billion gloves by end-2022. Supermax will invest a total capital expenditure of RM1.39bil for the new plants, ” it said.

Given the vulnerability of disruption of PPE supply chains and over-dependence on imports around the world, Supermax planned to reinvest earnings derived from its distribution centres into the respective countries where it operates, particularly the United States and the UK.

“We are now in the planning stages and will kickstart the US and UK projects in the first half of 2021, with a target to commission in stages beginning in the first half of 2022, ” it said, adding that the company might go for a dual listing on the Singapore stock exchange.

https://www.thestar.com.my/business/business-news/2020/10/28/super-duper-showing-by-glove-maker-supermax