UG Healthcare's net profit soars 72% to $5.5 million

On back of robust gloves production.

With the surge in the volume of gloves produced and sold, UG Healthcare Corporation has posted a whopping 72% spike in its net profit for FY 2016.

The group has achieved its planned production capacity expansion to 1.9 billion gloves per year, which led to higher sales in several countries in Europe, America, and Africa.

Its revenue increased as well, albeit only at a measly 5.5% to $58.8 million due to a reduction in average selling price of the group's products.

UG Healthcare Executive Director Lee Jun Yih said its two-pronged strategy in tending manufacturing and distribution platforms allowed the group to expand their production.

"We continue to be mindful of the global uncertainties, the fluctuations in currencies and raw material prices, as well as the dynamics in the various markets that we are in, and we will continue to harness our strengths in driving growth through our established manufacturing capabilities and global distribution network," he said.

The group's total operating expenses dropped 11.3% to $8.1 million due to the abscense of the one-off expense.

Meanwhile, financial cost also saw a decline to $0.2 million as a result of capitalisation interest on borrowing related construction of new production lines as well as lower interest rate from new banking facilities.

Looking forward, Lee said they are mulling to expand further their manufacturing and distribution platforms to increase their production capacity by another 500 million gloves per annum.

"While increasing our production capacity, we are also upgrading our existing production lines to enhance operational efficiencies. In addition, we are in the midst of planning to develop the plot of land beside our existing manufacturing facility for further expansion, which could potentially increase our annual production capacity by approximately another 1 billion gloves per annum,” the executive director said.