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How Riverstone Holdings Limited Makes Its Money

Riverstone Holdings Limited (SGX: AP4) is a Malaysia-based company that produces rubber gloves used in the cleanroom as well as healthcare industries.

In this article, I want to take a closer look at the sources of Riverstone’s revenue. Understanding how a company earns its keep is an important step for an investor to take before committing any capital to invest.

Here’s a chart that shows a breakdown of Riverstone’s revenue in 2017 by product-type:


Source: Riverstone 2017 annual report

Riverstone has three main product categories: nitrile gloves, natural latex gloves, and other non-glove consumables. The third category includes finger cots, static shielding bags, face masks, wipers and packaging materials.

The majority of the company’s revenue in 2017 was from the sale of nitrile and natural latex gloves, with only a small fraction of its revenue – 2.6% – coming from other non-glove products.

The chart below illustrates the geographical sources of Riverstone’s revenue in 2017:


Source: Riverstone 2017 annual report

We can see that Riverstone is a geographically diversified company, with revenue sourced from many different parts of the world, including Europe, Southeast Asia, and the USA.

In sum, Riverstone earns most of its revenue by selling nitrile and latex gloves around the world, with a focus on Southeast Asia, Europe, and the USA.

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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.