Riverstone (AP4) H2 2024 earnings summary

Executive summary

• Revenue for FY2024 rose 17.3% year-over-year to RM1.1 billion, with 4Q2024 revenue up 21.0% to RM278.0 million compared to 4Q2023.

• Gross profit for FY2024 increased 32.0% to RM390.1 million, but 4Q2024 gross margin declined to 32.3% due to higher costs.

• Profit after tax for FY2024 was RM286.9 million, up from RM220.4 million in FY2023; 4Q2024 profit after tax rose 3.7% to RM70.0 million.

Financial highlights

• Cost of sales increased 10.2% year-over-year to RM682.7 million in FY2024; 4Q2024 cost of sales up 35.6% to RM188.3 million.

• Other income declined 8.8% in FY2024 to RM28.4 million, mainly due to lower interest income.

• General and administrative expenses rose 19.9% to RM37.5 million in FY2024, driven by higher staff costs.

• Cash and cash equivalents decreased to RM715.1 million as at 31 December 2024 from RM875.4 million a year earlier.

• Dividends paid in FY2024 totaled RM363.1 million, with a proposed final dividend of 8.00 sen and a special interim dividend of 4.00 sen per share.

Outlook and guidance

• Glove supply has normalised, but the business faces price competition, currency fluctuations, volatile raw material prices, and higher production costs.

• Management expects these challenges to persist in the next reporting period and 12 months.