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10 Quick Things Investors Should Know About Riverstone Holdings Limited’s Latest Earnings

In late February, Riverstone Holdings Limited (SGX: AP4) announced its 2017 fourth quarter and full year earnings update. As a quick introduction, Riverstone is a Malaysia-based company that produces rubber gloves that are used in the cleanroom and healthcare industries.

Here are 10 things investors should know about Riverstone’s latest results:

1. Revenue for the reporting quarter improved 15.1% year-on-year to RM 210.7 million. For the whole of 2017, revenue grew 24.8% to RM 817.4 million.

2. Gross margin for the fourth quarter of 2017 was 24.4%, down from 26.3% in 2016’s fourth quarter, mainly due to pricing pressure and a change in the company’s sales mix.

3. Operating profit for the quarter declined by 2.2% year-on-year to RM 40.5 million. Full year operating profit was up by 9.4% to RM151.9 million.

4. Net profit for the reporting quarter fell 5.0% year-on-year to RM 34.2 million. 2017’s net profit was up by 7.4% to RM 129.3 million.

5. Similarly, earnings per share for the whole of 2017 was up by 7.5%to 17.45 sen.

6. In 2017, Riverstone generated operating cash flow of RM 145.7 million, up from RM 119.0 million a year ago.

7. As of 31 December 2017, Riverstone’s borrowings stood at RM 25 million while its cash and bank balances stood at RM 114.3 million, giving it a net cash position of RM89.3 million.

8. Over the course of 2017, Riverstone completed Phase 4 of its expansion plan, which lifted its total annual production capacity from 6.2 billion gloves at end-2016 to 7.6 billion gloves at end-2017

9. The company recommended a final dividend of 5.70 sen, bringing its total dividends to 7.0 sen for 2017, up 7.9% from 2016’s total dividend of 6.49 sen.

10. In its earnings release, Riverstone commented on its outlook:

“The Group has announced on the undertaking of phase 5 expansion plan which will add 1.4 billion gloves bringing the total annual production capacity to 9.0 billion gloves by the end of December 2018.

In addition, the Group has plans to add another 1.4 billion pieces of gloves by the end of 2019 as Phase 6, giving the Group a total annual production capacity of 10.4 billion pieces of gloves. Further details will be announced in due course.”

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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.