Riverstone (AP4) Q1 2025 earnings summary

Executive summary

• Specializes in high-tech cleanroom gloves, premium healthcare gloves, and consumables for electronics, semiconductor, and healthcare sectors.

• Operates manufacturing and sales sites in Malaysia, China, Thailand, and the Philippines.

• Revenue grew 1.1% year-over-year to RM252.3 million in 1Q FY2025, driven by higher healthcare glove volumes and stable cleanroom demand.

• Net profit declined 21.8% year-over-year to RM56.4 million, impacted by higher raw material costs, FX losses, and a shift to generic healthcare gloves.

• Maintains a resilient balance sheet, consistent dividend payout, and a strong focus on R&D and ESG initiatives.

Financial highlights

• 1Q FY2025 revenue was RM252.3 million, up 1.1% year-over-year but down 9.3% sequentially.

• Gross profit for 1Q FY2025 was RM82.2 million, a 15.7% decrease year-over-year and 8.5% lower sequentially.

• Gross profit margin fell by 6.5 pts year-over-year to 32.6%, but improved 0.3 pts sequentially.

• Net profit for 1Q FY2025 was RM56.4 million, down 21.8% year-over-year and 19.4% sequentially.

• Diluted EPS was 3.81 sen, down 21.8% year-over-year.

Outlook and guidance

• Cautiously optimistic on healthcare volume growth and resilient cleanroom demand.

• Three new healthcare production lines to be commissioned in 2HFY25 to support capacity needs.

• Focus remains on transitioning to higher-value specialty solutions for improved profitability.

• Targets further reductions in water and electricity usage, waste, and emissions through ongoing and future projects.

• Cleanroom client acquisition expected to contribute more to revenue and margins ahead.