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An Investor’s Quick Overview Of Riverstone Holdings Limited’s Track Record In Growing Its Business

Credit: Rvierstone Holdings Limited

Riverstone Holdings Limited (SGX: AP4) is a Malaysia based company operating in two key areas of the rubber gloves industry: cleanroom gloves and medical gloves.

One of the things that I like to do when analysing a company is to study its track record. The past is no guarantee of the future. But historical information is the most reliable thing that we can use as our basis to forecast what lies ahead.

And this brings me to the main purpose of this article, which is to have a quick overview of Riverstone’s historical business growth. The table below is a snapshot of the company’s important financial metrics from FY2013 (financial year ended 31 December 2013) to FY2017 (financial year ended 31 December 2017):

Source: Riverstone 2017 Annual Report

Here are a few points worth noting:

First of all, revenue increased from RM357.9 million to RM 817.4 million, up by 128.4% during the period. This translates to a CAGR (compound average growth rate) of 22.9%.

Secondly, gross profit has grown from RM 97.8 million in 2013 to RM 197.8 million in 2017, up by 102.2% during the period. This translates to a CAGR of 19.2% in the last five years. Similarly, net profit has grown by a CAGR of 21.8% during the period.

Thirdly, Riverstone’s dividend per share grew marginally from 6.8 sen to 7.0 sen during the period.

In sum, I think Riverstone delivered a commendable track record in the past five years by growing its revenue and profitability whilst maintaining its dividend payment during the period.

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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 Singapore has a recommendation for Riverstone Holdings Limited.