RIVERSTONE Holdings : AP4 0% delivered a 60.7 per cent jump year on year (yoy) in net profit to RM67.5 million (S$19.1 million) for the fourth quarter to December, as a dip in costs more than offset a cut in revenue.

The Malaysian glove maker posted a 2.3 per cent yoy decline in revenue at RM229.8 million for the period, based on the financial results it posted on Wednesday (Feb 28).

But Riverstone managed to lower cost of sales by 15.5 per cent and operating costs by 49.7 per cent compared to the corresponding period in 2022, because of lesser sales activities, reduced performance incentives and the strengthening of the US dollar against the ringgit.

Thus, the manufacturer of cleanroom gloves and healthcare gloves was able to turn in a higher bottom line.

Flush with cash, Riverstone has, on a per-share basis, recommended a special interim dividend of 5 sen and proposed a final dividend of 7.5 sen for FY2023, with the latter subject to shareholders’ approval at its annual general meeting.

These dividends and the earlier distributed interim dividend of 10 sen translate to a 151.3 per cent payout ratio based on its FY2023 net profit.

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“In view of our strong cash balance and healthy operating cash flow, Riverstone strives to continue rewarding our shareholders as part of our capital management strategy,” the company said in a press statement for the financial results.

Riverstone was in a net cash position as at end-December, with RM875.4 million in cash and deposits, while its total liabilities amounted to only RM143.7 million.

In FY2022, Riverstone paid out a special dividend of 8 sen, an interim dividend of 16 sen and a final dividend of 10 sen or 34 sen in total per share.

For the full year, Riverstone’s net profit declined by 29.9 per cent to RM220.4 million, as revenue slid 27.4 per cent to RM914.8 million due to lower average selling price and volume.

Earnings per share stood at 14.87 sen for FY2023, lower than 21.21 sen for FY2022. Net asset value per share was RM1.13 as at end-December 2023, compared to RM1.25 as at end-December 2022.

Riverstone chief executive Wong Teek Son said: “We are pleased to see gradual upticks over the course of FY2023 due to our successful diversification strategy. The introduction of more customised healthcare gloves and the acquisition of new customers have more than cushioned some of the challenges faced in other product categories in the past year.”

With an expanded customer base and a stronger cleanroom gloves segment driven by gradual recovery in consumer electronics demand, Riverstone is sanguine about its prospects for FY2024.

Share of Riverstone closed S$0.015 or 2 per cent lower at S$0.725 on Wednesday, before the financial results were published.