KUALA LUMPUR: LATEXX PARTNERS BHD [] reported a 18.3% declined in earnings to RM17.60 million in the second quarter and remained cautious about the glove industry, expecting to be challenging in the near to mid-term.
It said on Friday, Aug 12 the earnings were lower than the RM21.55 million a year ago due to the persistently high raw material prices and the adverse foreign exchange rate.
Profit before tax was RM20.42 million, a decline of 15.3% from RM24.12 million a year ago.
Latexx Partners said its revenue was flat at RM134.36 million compared with RM134.48 million while earnings per share were lower at 7.93 sen versus 10.39 sen. It declared a dividend of 2.5 sen per share.
When compared with the first quarter ended March 31, it said earnings rose 38.3% to RM17.60 million from RM12.73 million.
Profit before tax rose 36.7% to RM20.42 million from RM14.94 million while revenue jumped 41.8% to RM134.36 million from RM94.75 million.
'The growth in the current quarter compared to the preceding quarter was mainly spurred by higher sales volume due to stronger market demand,' it said.
In its outlook, it said the industry would remain to be challenging in the near to mid term. It noted the natural rubber latex price had softened to below RM10 per kg since June 2011 was expected to be hovering in this region in the near to mid term.
On the other hand, nitrile latex price has been on the increasing trend and the trend is foreseen to be persistent in the near to mid term.
Latexx Partners said despite the contradicting price trend of the two raw materials type, raw material price disparity will still remain and is expected to sustain cost advantage for nitrile gloves.
'In other words, it is estimated that nitrile gloves will continue to have a cost advantage over natural rubber latex gloves.'' Nitrile penetration is also expected to continue with strong contribution across all geographical markets,' it said.
Latexx Partners said the group would continue to grow its business by focusing on the nitrile range, especially on the non-medical sectors.
It said on Friday, Aug 12 the earnings were lower than the RM21.55 million a year ago due to the persistently high raw material prices and the adverse foreign exchange rate.
Profit before tax was RM20.42 million, a decline of 15.3% from RM24.12 million a year ago.
Latexx Partners said its revenue was flat at RM134.36 million compared with RM134.48 million while earnings per share were lower at 7.93 sen versus 10.39 sen. It declared a dividend of 2.5 sen per share.
When compared with the first quarter ended March 31, it said earnings rose 38.3% to RM17.60 million from RM12.73 million.
Profit before tax rose 36.7% to RM20.42 million from RM14.94 million while revenue jumped 41.8% to RM134.36 million from RM94.75 million.
'The growth in the current quarter compared to the preceding quarter was mainly spurred by higher sales volume due to stronger market demand,' it said.
In its outlook, it said the industry would remain to be challenging in the near to mid term. It noted the natural rubber latex price had softened to below RM10 per kg since June 2011 was expected to be hovering in this region in the near to mid term.
On the other hand, nitrile latex price has been on the increasing trend and the trend is foreseen to be persistent in the near to mid term.
Latexx Partners said despite the contradicting price trend of the two raw materials type, raw material price disparity will still remain and is expected to sustain cost advantage for nitrile gloves.
'In other words, it is estimated that nitrile gloves will continue to have a cost advantage over natural rubber latex gloves.'' Nitrile penetration is also expected to continue with strong contribution across all geographical markets,' it said.
Latexx Partners said the group would continue to grow its business by focusing on the nitrile range, especially on the non-medical sectors.
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