Riverstone (AP4) H2 2023 earnings summary

Executive summary

• FY2023 revenue was RM914.776m and net profit RM220.376m, down 27.4% and 29.9% YoY, respectively.

• 4Q2023 revenue rose 3.1% QoQ to RM229.814m and net profit increased 13.9% to RM67.526m, extending sequential net-profit growth for a fourth consecutive quarter.

Financial highlights

• FY2023 gross profit was RM295.511m, down 34.4% YoY; PBT was RM279.350m, down 33.0%.

• 4Q2023 gross profit rose 16.9% QoQ to RM90.954m and PBT rose 15.1% to RM84.590m.

• 4Q23 gross margin expanded 4.7 percentage points QoQ to 39.6%, supported by stronger product mix and favourable FX; FY23 gross margin was 32.3%, down from 35.8%.

• FY23 diluted EPS was 14.87 sen, down 29.9% YoY; 4Q23 diluted EPS was 4.56 sen, up 14.0% QoQ and 61.1% YoY.

Segment performance

• Cleanroom products include nitrile and latex gloves, finger cots, packaging materials and face masks, serving electronics, semiconductor, pharmaceutical and other high-tech sectors.

• Healthcare products include procedure, high-risk, hand-specific, dental and accelerator-free gloves for healthcare facilities and food-sector businesses.

• Customised healthcare glove demand remained elevated; new products and customer additions helped cushion challenges in other categories, while cleanroom gloves showed marginal 4Q23 recovery.