The revenue growth is attributed to higher average selling prices (ASP) of gloves, which is expected to remain buoyant in the short to medium term, and continual improvement in operating efficiencies of nitrile glove manufacturing operations following the commissioning of additional production lines.
Sales into new markets
VIP generated a profit after tax of $116,056 in FY20 compared to a loss of $4,797,309 in FY19.
The profit is due to an increase in demand for nitrile gloves, particularly in the fourth quarter of FY20, and a reversal of impairment of inventory amounting to $290,721.
During FY20, VIP expanded its sales network of nitrile gloves to new Asian and Middle Eastern markets and invested working capital to increase its production capabilities at its manufacturing facilities in Malaysia.
The company added two new nitrile glove lines that were completed in June 2020 and fully commissioned in July 2020.