KUALA LUMPUR: ADVENTA BHD [] net profit for the first quarter ended Jan 31, 2011 fell by 55.6% to RM4.05 million from RM9.35 million a year earlier due to historical high material cost and the price adjustment lag based on previous month/previous quarter cost index.
Revenue for the quarter however rose to RM106.19 million from RM76.64 million in 2010. Earnings per share was 2.65 sen while net assets per share was RM1.42.
Reviewing its performance, Adventa said on Thursday, March 31 that the current year challenge was to manage the changing preference and buying pattern of the market.
It said many latex exam glove buyers had moved to switching part or most of their purchases to the cheaper Nitrile gloves, adding that those that remain were finding it more attractive to buy powder free versions than the classic powdered glove.
It said the trend was stressing out equipment compatibility, and if latex prices remain high, the possibility of latex exam gloves going out of favour was real and may happen sooner than later.
'The group is focused on meeting these challenges and adapting resources,' it said.
On the surgical glove business, Adventa said the change over to synthetics was not happening yet and orders remained robust for the forward months.
This sector would not be affected by the high material price in terms of usage, it said.
A new range of products to be launched in Q3 will open up new markets sectors in growth countries, it said.
Meanwhile, Adventa said it does not see any negative impacts from the Japanese Tsunami disaster.
With the current Middle East turmoil, the company was taking several steps to assist the business partners in those regions.
'On a short term period, we expect a slight dip in sales with the uncertainty of the political situation weighing down on business confidence.
'However the group expects healthcare spending to increase rather than shrink as a result of the changes,' it said.
Revenue for the quarter however rose to RM106.19 million from RM76.64 million in 2010. Earnings per share was 2.65 sen while net assets per share was RM1.42.
Reviewing its performance, Adventa said on Thursday, March 31 that the current year challenge was to manage the changing preference and buying pattern of the market.
It said many latex exam glove buyers had moved to switching part or most of their purchases to the cheaper Nitrile gloves, adding that those that remain were finding it more attractive to buy powder free versions than the classic powdered glove.
It said the trend was stressing out equipment compatibility, and if latex prices remain high, the possibility of latex exam gloves going out of favour was real and may happen sooner than later.
'The group is focused on meeting these challenges and adapting resources,' it said.
On the surgical glove business, Adventa said the change over to synthetics was not happening yet and orders remained robust for the forward months.
This sector would not be affected by the high material price in terms of usage, it said.
A new range of products to be launched in Q3 will open up new markets sectors in growth countries, it said.
Meanwhile, Adventa said it does not see any negative impacts from the Japanese Tsunami disaster.
With the current Middle East turmoil, the company was taking several steps to assist the business partners in those regions.
'On a short term period, we expect a slight dip in sales with the uncertainty of the political situation weighing down on business confidence.
'However the group expects healthcare spending to increase rather than shrink as a result of the changes,' it said.
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