leadf
logo-loader
viewVIP Gloves Ltd

VIP Gloves records half-year revenue and profit increases thanks to nitrile glove demand

Half-year profit rose 326 per cent while revenue was up nearly 300 per cent compared with the December 2019 half-year.

VIP Gloves Ltd - VIP Gloves records half-year revenue and profit increases thanks to nitrile glove demand
The company has experienced a demand upsurge since April 2020 primarily due to COVID-19.

VIP Gloves Ltd (ASX:VIP) has recorded skyrocketing revenue and profit in the half-year to December 2020, all thanks to strong demand for its nitrile gloves.

Gloves that VIP makes via its plant in Malaysia have a number of advantages over standard rubber gloves, including better resistance to oil and acids, more structural integrity and they are less likely to cause allergic reactions.

The company put the increased demand for its nitrile gloves down to COVID-19, saying it had experienced a demand upsurge since April 2020 which led to a significant rise in average selling prices.

Increasing production capacity

Executive director WM Chen said VIP’s increase in production capacity during the period also put the company in good stead, as it declared a maiden interim dividend of 0.18 cents yesterday.

“Following the commissioning of new production lines, I believe we can achieve continued future dividends given the sustainable demand for nitrile gloves, strong average selling prices and the increase in our production capacity over the next few years,” he said.

Earlier this month, VIP confirmed that its glove line expansion program is on track to be completed between late February and May 2021.

Numbers don’t lie

VIP Gloves recorded a profit after tax of $2.25 million, up 326 per cent on the near-$1 million half-year loss it recorded in December 2019.

That was rooted in half-year revenue of $20.98 million, up nearly 300 per cent on the $5.3 million in the prior corresponding period.

VIP made a gross profit on sales of its gloves of $9.7 million, a staggering 2,167 per cent increase on the year before.

Maiden dividend

The company will pay a maiden interim dividend of 0.18 cents to eligible shareholders at the end of March, following a new dividend policy rubber-stamped by its board.

Dividends will be declared and paid twice a year after the announcement of the company’s preceding half-year and full-year financial results.

VIP shares have been as much as 20 per cent higher this morning to 7 cents.

- Daniel Paproth

Quick facts: VIP Gloves Ltd

Price: 0.049 AUD

ASX:VIP
Market: ASX
Market Cap: $38.51 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of VIP Gloves Ltd named herein, including the promotion by the Company of VIP Gloves Ltd in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

VIP Gloves' Sebastian Chang talks maiden interim profit and dividend

VIP Gloves Ltd's (ASX:VIP) Sebastian Chang speaks to Proactive's Andrew Scott after recording record revenue and profit in the half-year to December 2020. The company's putting the increased demand for its nitrile gloves down to COVID-19, saying it has experienced a demand upsurge since April...

on 15/2/21

2 min read