Riverstone (AP4) H2 2024 earnings summary

Executive summary

• Specializes in high-tech cleanroom gloves, premium healthcare gloves, and cleanroom consumables for electronics, semiconductor, and healthcare markets; diversified operations, flexible production, and R&D capabilities.

• FY2024 revenue increased 17.3% to RM1,072.8 million and net profit rose 30.2% to RM286.9 million, supported by cleanroom and healthcare growth.

• Product-mix optimisation toward high-end customised products lifted FY2024 gross margin by 4.1 percentage points to 36.4%.

Financial highlights

• FY2024 gross profit rose 32.0% to RM390.1 million; profit before tax increased 28.4% to RM358.7 million.

• Q4 revenue was RM278.0 million, up 21.0% YoY but down 6.8% sequentially; net profit was RM70.0 million, up 3.7% YoY and down 3.0% sequentially.

• Q4 gross profit was RM89.8 million, down 1.3% YoY and 13.3% sequentially; gross margin was 32.3%, down 7.3 percentage points YoY.

• FY2024 operating cash flow was RM378.6 million.

Outlook and guidance

• New cleanroom clients are expected to contribute revenue after completing qualification processes.

• Price renegotiations with customers at end-2024 largely mitigated the margin impact of a weaker USD against MYR.

• R&D and flexible production support changing market conditions and customer needs; ESG work targets lower water and electricity use, reduced waste, and renewable energy adoption.

• Process optimisation and expansion of sustainable practices are ongoing priorities.