Supermax 2QFY20 profit down 20% on lower selling prices, rising costs

KUALA LUMPUR (Feb 25): Supermax Corp Bhd’s net profit in the second quarter ended Dec 31, 2019 (2QFY20) declined 20.9% on-year to RM30.17 million from RM38.14 million, dragged by lower average selling prices and higher production costs.

Quarterly earnings per share fell to 2.31 sen, from 2.91 sen in 2QFY19. No dividend was declared for the quarter, as opposed to 1.5 sen for the same period last year.

According to Supermax's bourse filing, quarterly revenue grew marginally to RM385.5 million, from RM385.1 million in 2QFY19.

The latest-quarter results dragged Supermax’s net profit in the six-month period ended Dec 31, 2019 (6MFY20) down by 25.87% to RM54.91 million, from RM74.08 million in the year-ago period.

For 6MFY20, cumulative revenue grew 0.44% on-year to RM755.44 million, from RM752.15 million.

On prospects, Supermax said it is expediting the commissioning of new rubber glove manufacturing lines at its latest plant in light of the Covid-19 outbreak that is still ongoing.

Meanwhile, it continues to secure licences and approval for more of its contact lens products, to expand the product range in the segment.

Shares of Supermax rose seven sen or 4.43% to close at RM1.65, giving it a market capitalisation of RM2.24 billion.