KUALA LUMPUR – Glove manufacturer Supermax Corp Bhd is projecting between 20 per cent and 30 per cent sales growth this year, boosted by stabilised rubber prices and manufacturing expansion plans.
For the financial year ended December 31, 2011, the group hopes to achieve a net profit of between RM100 million and RM110 million and sales of about RM1 billion.
The company is expected to announce its 2011 financial performance next month.
Natural rubber prices are expected to fall to between RM5.50 and RM6 per kg in the first quarter of 2012 and to remain stable for the remaining of the year.
Latex price, which makes up some 70 per cent of glove makers’ total cost, has retracted to RM6.50 per kg from a high of RM11 last year.
“Demand for natural rubber gloves is increasing,” said executive chairman Datuk Seri Stanley Thai after the group’s extraordinary general meeting yesterday.
During the third quarter to September 30, 2011, Supermax’s net profit fell 18.9 per cent to RM30.91 million due to volatile latex price, a weak US dollar and supply of rubber gloves exceeding demand.
Group revenue, however, rose 15.5 per cent to RM271.42 million.
Thai said he was optimistic of a better sales growth this year as the company continued to strengthen its distribution network.
It recently incorporated a wholly-owned subsidiary in Britain, Supermax Healthcare Ltd, which would focus on dental gloves in the Irish, Scottish and British markets.
“This set-up is similar to the subsidiary that we have in Germany, with the only difference being that the outfit is more focused on healthcare and hospitals.”
Supermax has allocated RM122 million to increase its production capacity from 17.5 billion pieces of gloves to 22 billion by next year.
This is expected to be achieved with the completion of the company’s two new plants in Meru, Selangor and the replacement of all of its production lines.
