Nitrile glove manufacturer VIP Gloves Ltd (ASX:VIP) has turned in remarkable full year financial results, including an astounding 3986.5% increase in profits.
Powered by the surge in global demand for PPE products due to the COVID pandemic and an expansion of production capabilities, VIP recorded a 251.4% jump in revenues to $48,123,312, and a 3986.5% leap in profit from ordinary activities after tax to $4,742,583 .
The profit for the consolidated entity after providing for income tax amounted to $4,742,583 (30 June 2020: $116,056) whilst the consolidated profit before depreciation and amortisation, finance costs, share-based payments and income tax expense amounted to $16,793,308 (30 June 2020: $324,767).
The company said the profit was attributable to increased production capacity and strong demand for product resulting in an increased average selling price for nitrile gloves during the reporting period and forward sales contracts to December 2021.
During the reporting period, the company commissioned two new glove production lines at its facility in Selangor, Malaysia, bringing total production lines to six and increasing annual production to 744 million pieces.
Work also commenced on the installation of a further four production lines which will increase production capacity to 936 million pieces per annum.
Other highlights during the reporting period included obtaining the prestigious European Union CE-Mark Standard accreditation and US FDA 510(k) accreditation which provides the potential to deliver nitrile gloves to additional lucrative markets in Europe and North America.
In the past week, the company also confirmed it had received confirmation from theTherapeutic Goods Administration (TGA) of Australia registering VIP’s nitrile examination/ treatment gloves as a Class 1 Medical Device and approving commencement of sales of the product in Australia.
