Riverstone (AP4) Q3 2024 earnings summary

Executive summary

• Revenue for 3QFY24/3Q2024 surged 33.9% year-over-year to RM298.4 million, driven by higher sales volume, improved product mix, and increased production.

• Net profit for 3QFY24/3Q2024 increased 21.8% year-over-year to RM72.2 million, supported by higher value gloves and operational efficiency.

• For the nine months ended 30 September 2024, revenue reached RM794.8 million, up 16.1% year-over-year, with net profit at RM216.9 million, a 41.9% increase.

• Diversified revenue streams from cleanroom and healthcare businesses, with strong R&D and flexible production.

• Maintains a resilient balance sheet, consistent dividend payouts, and a focus on ESG initiatives.

Financial highlights

• 3QFY24/3Q2024 gross profit rose 33.2% year-over-year to RM103.6 million; gross margin was 34.7%.

• 9M FY2024 gross profit increased 46.8% year-over-year to RM300.3 million.

• Operating profit margin for 3QFY24 was 30.3%, down 2.7 percentage points due to foreign exchange loss.

• Earnings per share for 3QFY24/3Q2024 were 4.87 sen, up from 4.00 sen in 3Q2023; 9M2024 EPS was 14.63 sen, up from 10.31 sen in 9M2023.

• Cash and cash equivalents stood at RM790.1 million as of 30 September 2024.

Outlook and guidance

• Six new cleanroom and three healthcare production lines to be commissioned by end 2024; three more healthcare lines by 1Q2025.

• Focus on R&D, flexible production, and ESG to maintain competitive edge and adapt to market changes.

• Ongoing initiatives to reduce water, electricity, and waste, and to increase renewable energy usage.

• Management expects price competition, currency fluctuations, and cost pressures to persist over the next 12 months.