Wednesday, September 28, 2011

Adventa 3Q earnings dn 50.9% to RM4m

KUALA LUMPUR: ADVENTA BHD []'s posted net profit of RM4.02 million in the third quarter ended July 31, 2011, down 50.9% from RM8.19 million a year ago, impacted by the weakness in the US dollar and higher raw material costs.

It said on Wednesday, Sept 28 revenue rose 18.5% to RM103.58 million from RM87.38 million but this was impacted by higher operating expenses, which increased to 27.9% to RM99.69 million from RM77.95 million a year ago.

Adventa, whose core businesses are manufacturing and distribution of medical products, said its earnings per share declined to 2.63 sen from 5.52 sen.

Finance costs rose 58.2% to RM2.34 million from RM1.47 million, contributing to the reduced profit this quarter from a year ago.

"In spite of achieving cost savings across the group, the impact of improvement however was affected by the weaknesses in US dollar and higher raw material cost resulting in falling margins.

"The medical glove market is not typically affected by global economic slowdown, being a must use product in the healthcare industry. However, those non-medical sectors that use medical gloves will see a negative growth," it added

Adventa's dhort term borrowings increased 15.5% to RM112.6 million from RM97.44 million a year ago while long term borrowings went up 202.4% to RM100.36 million from RM33.19 million a year ago.

This brings the increment of total borrowings to RM212.96 million from RM130.62 million, representing a 63% increase from a year ago.

For the nine-month period, its net profit fell 47% to RM12.65 million from RM24.01 million. Revenue was however 28.1% higher at RM314.06 million compared with RM245.15 million a year ago.

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