KUALA LUMPUR, September 1, 2024 – (ACN Newswire) – – Flexidynamic Holdings Berhad (“Flexidynamic” or the “Company”), a well-established solutions provider for the rubber glove manufacturing industry, is pleased to announce its financial results for the second quarter. ending June 30, 2024 (“Q2 FY2024”).
The Group recorded a profit of RM7.76 million for Q2 FY2024, reflecting a strategic shift as the Company capitalizes on emerging opportunities in the recovering glove industry. While the revenue showed a decline from RM13.30 million in the corresponding quarter of the previous year (“Q2 FY2023”), it was mainly due to the completion of a significant overseas project in the previous year. Flexidynamic saw a strong increase in repair and maintenance services, system upgrades, and additional equipment from existing customers. This signals positive market sentiment and the beginning of a rebound in the glove manufacturing sector.
Profit before tax (“PBT”) for Q2 FY2024 was RM0.91 million, slightly lower than the RM0.93 million recorded in Q2 FY2023. However, the Company’s continued focus on cost management and operational efficiency has ensured steady profitability. In particular, Profit After Tax (“PAT”) increased to RM0.98 million, a significant increase compared to Loss After Tax (“LAT”) of RM0.55 million in the same quarter last year, driven by deferred tax recognition. assets from customer downpayments.
A comparison with the previous quarter (“Q1 FY2024”) further highlights Flexidynamic’s positive trajectory. Revenue increased from RM4.75 million in Q1 FY2024 to RM7.76 million in Q2 FY2024, while PBT experienced a remarkable 501.32% increase, rising from RM0.15 million to RM0.91 million. This strong performance underscores the Company’s ability to navigate the challenging environment and benefit from the recovery in the glove industry.
Mr. Tan Kong Leong, Managing Director of Flexidynamic, commented on the results: “The second quarter of FY2024 marks a significant recovery period for Flexidynamic as the glove industry shows early signs of revival. While the global oversupply of gloves remains, mainly due to the capacity expansion that very large during the Covid-19 pandemic, we are optimistic about the long-term prospects of the industry, especially in emerging markets with low glove consumption, it is expected that our strategic focus on operational efficiency and cost management has allowed us to use this recovery effectively, leading to a significant increase in profits .”
He added, “In addition to our core operations, we are pleased to announce our new venture into gamma radiation sterilization services in collaboration with Gammatech. This initiative will not only serve our existing customers in the glove industry but also open up new opportunities in the sector. as pharmaceuticals , food processing, and packaging By offering these services, we are poised to expand our market reach and deliver greater value to our shareholders.
Since its inception in 2012, Flexidynamic has established itself in the rubber glove manufacturing industry. Strategic acquisition of Flexidynamic Engineering Co. Ltd. in Thailand in 2018 has expanded its presence in Southeast Asia, supported by operational offices in Malaysia and Thailand and a manufacturing facility in Banting, Malaysia. The Group also has various infrastructure projects, including a new contract of RM12.4 million for water treatment plant and water intake in Loji Rawatan Air Chupak, Jajahan Gua Musang, Kelantan, which is expected to contribute positively to earnings. Furthermore, with the provision of sterilization services planned by the Group using gamma radiation through Gammatech, a 51% owned subsidiary, Flexidynamic is set to not only serve existing glove industry customers but also expand into the pharmaceutical, food processing, and packaging sectors, with using expertise to drive sustained growth and diversification.
About FLEXIDYNAMIC HOLDINGS BERHAD
Founded in 2012, Flexidynamic Holdings Berhad has become an important solution provider in the rubber glove manufacturing sector, with significant markets in countries such as Vietnam, Indonesia, and Sri Lanka, supported by strategic offices in Malaysia and Thailand. From the beginning focusing on chlorination systems for the production of powder-free gloves, Flexidynamic has expanded its product range and geographic footprint, especially after the strategic acquisition of Flexidynamic Engineering Co. Ltd. in Thailand in 2018. This acquisition increases support for overseas operations, especially in the Southeast Asian region. With a relentless focus on innovation and a strong support base, Flexidynamic Group is poised for further growth, leveraging its expertise to tap into new markets and sectors.
For more information, visit https://flexidynamic.com/.
Published by: Swan Consultancy Sdn. Bhd. on behalf of Flexidyanmic Holdings Berhad
For more information, contact:
Jazmin Wan
Phone: +60 17-289 4110
Email: j.wan@swanconsultancy.biz
William Yeo
Phone: +60 13-213 2103
Email: w.yeo@swanconsultancy.biz
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