Here Are 2 Companies That Delivered Profit Growth Recently

We’re in the tail end of the current earnings season.

As is common with every earnings season, there will be some companies posting growth, some companies posting mixed numbers, and some companies experiencing declines. So, which are the companies that have recently delivered higher profits? Let’s look at two of them:

1. Last week, Riverstone Holdings Limited (SGX: AP4) released its 2017 third quarter earnings.

As a quick introduction, Riverstone is a Malaysia-based company producing rubber gloves that are used in both the cleanroom and healthcare industries.

During the reporting quarter, the company’s revenue was up by 12.5% year-on-year to RM187.8 million while gross profit grew 16.7% to RM50.8 million. As a result, its net profit was up by 15.1% to RM 34.3 million. Riverstone credited its top-line performance to higher demand for both its cleanroom and healthcare gloves. For the better margins, the company had enjoyed a better product mix and lower raw material costs.

In its earnings release, Riverstone said that Phase 4 of its expansion plan is on track. Four production lines in the phase have already been commissioned, with three more coming by the end of this year. Riverstone expects its production capacity to reach 7.6 billion gloves per year at end-2017, up from 6.2 billion at end-2016. The company’s current goal is to achieve a production capacity of 10.4 billion gloves per year by end-2019.

2. Luxury watch retailer Hour Glass Ltd (SGX: AGS), which has 40 boutiques in the Asia Pacific region, is another company that announced its latest earnings last week. The reporting period was for the second quarter of its fiscal year ending 31 March 2018 (FY2018).

During the reporting quarter, Hour Glass’s revenue climbed 6.0% to S$173.9 million on the back of an improvement in consumer sentiment in certain markets, and increased economic activity in its key geography. Partly because of an increase in its gross profit margin from 21.4% a year ago to 22.2%, Hour Glass’s profit attributable to shareholders for the quarter jumped 28.6% to S$10.7 million.

Regarding Hour Glass’s outlook, this is what the company had to say in its earnings release:

“The Hour Glass is mindful that the global watch sector continues to remain challenging. It will continue operating its 40 boutiques in nine key cities throughout the Asia Pacific region while improving its retail network and merchandising portfolio. The Group also continues to identify opportunities in the region for the longer term.”

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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. The Motley Fool Singapore has a recommendation for Riverstone Holdings Limited.