KUALA LUMPUR – Flexidynamic Holdings Berhad (“Flexidynamic” or the “Company”), an established solutions provider for the rubber glove manufacturing industry, is pleased to announce its financial results for the third quarter ended 30 September 2024 (“Q3 FY2024”).
For Q3 FY2024, the Group recorded a revenue of RM19.23 million, representing an impressive increase of 249.43% compared to RM5.50 million in the corresponding quarter of the previous year (“Q3 FY2023”). The revenue growth was driven by a surge in system and equipment upgrades for replacement parts, storage and process tanks, and contributions from the sub-contract for supply and installation of mechanical and electrical (“M&E”) engineering works at the Loji Rawatan Air Chupak, Jajahan Gua Musang, Kelantan. Local markets were the primary revenue contributors, accounting for 97.13% of total revenue, reflecting strong recovery in domestic demand.
Profit before tax (“PBT”) for Q3 FY2024 stood at RM0.64 million, a remarkable turnaround from a loss before tax (“LBT”) of RM0.95 million in Q3 FY2023. Profit after tax surged to RM0.82 million, an increase of 190.0% compared to the same quarter last year. The improvement was largely attributed to higher gross profit margins from selected projects and the recognition of deferred tax assets arising from customer downpayments.
For the cumulative nine-month period (“9M FY2024”), the Company posted a revenue of RM31.73 million, an increase of 7.18% from RM29.61 million in the same period last year. Profit after tax for the nine months reached RM1.88 million, representing a significant improvement from the loss of RM0.91 million in the prior year.
Mr. Tan Kong Leong, Managing Director of Flexidynamic Holdings Berhad, commented, “The third quarter of FY2024 underscores the strength of our strategic diversification efforts and operational excellence. We are thrilled to report robust revenue growth and a significant improvement in profitability, driven by strong demand in the domestic market and the contribution from infrastructure projects. While the glove industry faces ongoing challenges, we remain optimistic about its long-term potential, particularly in light of emerging global demand. Additionally, our planned gamma radiation sterilisation services with Gammatech Sdn. Bhd. (“Gammatech”) position us to tap into high-value markets beyond our traditional focus. We are committed to driving sustainable growth and delivering enhanced value to our shareholders.”
Flexidynamic remains optimistic about the long-term prospects of the glove manufacturing industry, despite challenges posed by global oversupply and capacity rationalisation. The Company is confident that increased global hygiene awareness and demand in emerging markets with low glove consumption will drive long-term growth, especially in the healthcare sector. Additionally, the recent announcement by the Office of the United States Trade Representative to increase import tariffs on China-made gloves to 50% in January 2025 and up to 100% by January 2026 presents opportunities for local glove manufacturers to upgrade their systems and equipment to meet returning demand.
The Company’s diversification into infrastructure projects continues to bear fruit, with the sub-contract for the Loji Rawatan Air Chupak project contributing positively to revenue and profit. This strategic move reflects Flexidynamic’s commitment to exploring avenues beyond its traditional markets.
Flexidynamic is also advancing plans to provide gamma radiation sterilisation services through its 51%-owned subsidiary, Gammatech. This new initiative aims to cater not only to the Company’s existing glove industry customers but also to sectors such as pharmaceuticals, food processing, and packaging.
