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A Quick Overview Of The Latest Quarterly Results Of Riverstone Holdings Limited and Kossan Rubber Industries Berhad

Riverstone Holdings Limited (SGX: AP4) and Kossan Rubber Industries Berhad (KLSE: KOSSAN) are two of the leading glove producers in Malaysia. The former is listed in Singapore, whilst the latter is listed in Malaysia.

Recently, both companies reported their latest quarterly results. In this article, we will compare their results.

Latest quarterly result comparison:

Sources: Kossan Rubber FY17 Q2 Result Announcement, Riverstone FY17 Q2 Result Announcement

Here, we see that revenues at both companies grew compared to the same period last year.

For Riverstone, the growth in revenue was mainly driven by increase in volume, whilst for Kossan Rubber, growth in revenue was driven by better pricing and volume.

The “slower” growth in operating profit and net profit for both companies was mainly due to increase in raw material prices, especially for Riverstone. In fact, higher raw material cost resulted in a significant drop in operating profit margin at Riverstone by more than 5%. As for Kossan, its gloves division’s margins seemed to hold up quite well for this quarter, with the higher selling price.

Conclusion:

We see that both gloves companies continue to grow at rapid rates.

Yet, increase in cost (especially raw material) have resulted in a weaker growth in the underlying profitability for both companies.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has a recommendation for Riverstone.