Riverstone reports higher 1QFY2024 earnings on better margin mix

The Edge Singapore
1-min read

Riverstone plans to pay an interim dividend of 4 sen, equivalent to a payout ratio of 82.1%

Glove maker Riverstone Holdings Ap4 has reported revenue of RM249.5 million for its 1QFY2024, up 4.8% y-o-y, as demand increases from end users from the semiconductor and consumer electronics industries.

However, earnings in the same period jumped 54.5% y-o-y to RM72.7 million - marking its fifth consecutive quarter of sequential growth.

The company attributes the better bottom line to a more favourable product mix sold.

It plans to pay an interim dividend of 4 sen per share, equivalent to a payout ratio of 82.1%.

Riverstone's executive chairman and CEO Wong Teek Son says the company is "better positioned" to ride on the industry uptrend given its product mix of higher-value customised products.

"Going forward, we will continue to focus on increasing our product value and new customer acquisition through customisation," he says.

Wong says he is optimistic about the growth prospects of Riverstone's core cleanroom glove segment, given how the semiconductor and consumer electronics industries is picking up.

"This year, we are also building new lines to increase our capacity for cleanroom glove production to support longer-term demand in the space," he adds.

Riverstone Holdings shares closed May 9 at 78 cents, down 0.64% for the day but up 9.15% year to date.

 

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