Riverstone (AP4) Q3 2024 earnings summary

Executive summary

• Riverstone Holdings specializes in high-tech cleanroom and premium healthcare gloves, serving electronics, semiconductor, healthcare, and food sectors.

• Revenue for 3Q2024 rose 33.9% year-over-year to RM298.4 million, with gross profit up 33.2% to RM103.6 million, driven by higher sales volume and increased production.

• 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 flexible production and strong R&D capabilities.

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

Financial highlights

• 9M FY2024 revenue rose 16.0% year-over-year to RM794.8 million; 3Q FY2024 revenue up 20.9% sequentially to RM298.4 million.

• 9M FY2024 gross profit increased 46.8% year-over-year to RM300.3 million; 3Q FY2024 gross profit up 4.4% sequentially to RM103.6 million.

• 9M FY2024 net profit surged 41.9% year-over-year to RM216.9 million; 3Q FY2024 net profit stable at RM72.2 million sequentially.

• Earnings per share for 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.

• Interim dividend of 4.00 sen per share declared for 3Q2024.

Outlook and guidance

• 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.

• 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 over the next 12 months.