UG Healthcare’s profits soar 34% to $24m in H1

Thanks to prudent expansion plans.

Prudent expansion plans paid off for UG Healthcare as it posted a 34% YoY net profit growth to $24m in the first half of FY16.

The glove manufacturer and distributor also reported that its planned increase in production capacity led to increased volume of gloves produced and sold in the half-year. Revenue surged 20.1% YoY to $30.1m, but was partially offset by lower average selling price of gloves.

Meanwhile, gross profit jumped 42.6% YoY to $7.2m. Also, the waning ringgit against US dollar over the financial period resulted to a surge in other income to $1m in 1HFY16 from $0.2m in the corresponding period in FY15.

The weaker ringgit against US dollar over the financial period has also led to a surge in other income from S$0.2 million in HY2015 to S$1.0 million in HY2016.