Supermax attributed this rise from ramping up financial and productivity management. This resulted in reduced operating expense from RM163 to RM150 million.
Compared with last year which its associate lost RM10million, this year it won RM13,4million.
We see the gain of profit by 13million (from operational cost) and 23.4milion (from associate margin), that brings up to the total of RM36.4million.
Deduct that from the final earning we have about RM8.6million profit coming mainly from gross margin(assuming other changes in margins are minimal since they are not mentioned).
That means its gross margin has increased from Rm1.5milion to RM8.6million. That's still a large increase, about 6-7 times.
Question: its revenue rose 7.4% only. The only explanation to the discrepancy is that Supermax has reduced production, sold less gloves than before but sold more expensive gloves!
How do you explain the increase production lines being propounded about by them? Has the demand drop?
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