Riverstone Holdings Limited: 3Q2025 Financial Review and Investment Outlook
Riverstone Holdings Limited, a manufacturer and distributor of examination gloves and cleanroom consumables, released its unaudited condensed interim consolidated financial statements for the third quarter and nine months ended 30 September 2025. The following analysis provides a comprehensive review of Riverstone’s key financial metrics, performance trends, dividend actions, and outlook, strictly based on the disclosed report.
Key Financial Metrics and Performance Comparison
| Metric |
3Q2025 |
2Q2025 |
3Q2024 |
YoY Change |
QoQ Change |
| Revenue (RM ‘000) |
247,496 |
249,157 (inferred from 9M2025 – 3Q2025) |
298,435 |
-17.1% |
-0.7% (inferred) |
| Profit Before Tax (RM ‘000) |
67,214 |
66,101 (inferred) |
90,400 |
-25.6% |
+1.7% (inferred) |
| Net Profit (RM ‘000) |
52,020 |
50,697 (inferred) |
72,200 |
-28.0% |
+2.6% (inferred) |
| EPS (sen, basic/diluted) |
3.51 |
3.42 (inferred) |
4.87 |
-27.9% |
+2.6% (inferred) |
| Interim Dividend (sen per share) |
2.50 |
3.00 |
4.00 |
-37.5% |
-16.7% |
Historical Performance and Trends
- Revenue for 9M2025 was RM744.6 million, down from RM794.8 million in 9M2024, reflecting a 6.3% YoY decline. This was driven by both price competition and softer demand conditions in the glove industry.
- Gross profit margin dipped from 34.7% in 3Q2024 to 30.9% in 3Q2025, primarily due to higher cost of sales and lower selling prices.
- Other income dropped by 31.1% YoY, mostly due to lower interest income as fixed deposit balances declined.
- General and administrative expenses increased by 3.4% YoY, mainly attributed to higher staff-related costs.
- Operating profit fell from RM90.4 million in 3Q2024 to RM67.2 million in 3Q2025, a 25.6% decrease.
- Effective tax rate increased to 22.6% in 3Q2025 (from 20.1% in 3Q2024) due to lower reinvestment allowances recognized during the quarter.
- Net profit in 3Q2025 was RM52.0 million, a 28.0% YoY decrease.
Dividend Review
- The Board declared an interim dividend of 2.50 sen per share for 3Q2025, a sharp reduction compared to 4.00 sen in 3Q2024 and 3.00 sen in the previous quarter.
- Special and final dividends paid earlier in 2025 amounted to a total of 12.00 sen per share (4.00 sen special + 8.00 sen final), again lower than the previous year’s total dividends.
Balance Sheet and Cash Flow Highlights
- Non-current assets (mostly property, plant and equipment) decreased to RM762.2 million due to RM53.7 million in depreciation charges.
- Inventories declined to RM93.8 million as part of improved inventory management, with a higher proportion of lower-cost products remaining in stock.
- Trade receivables dropped to RM149.1 million, mainly due to improved collections.
- Cash and cash equivalents stood at RM660.9 million (down from RM715.1 million at year-end), reflecting continued investment in PPE and dividend payouts.
- Current liabilities reduced to RM99.2 million, with payables and accruals decreasing significantly.
- Net asset value per share fell to RM1.02 from RM1.06 at year-end.
Related Party Transactions and Directors’ Remuneration
- Purchases from related parties (plant and equipment, repair and maintenance) amounted to RM590,000 over nine months, all on arm’s length terms.
- Total compensation paid to key management personnel for 9M2025 was RM8.6 million, with directors receiving RM6.3 million and other key management RM2.2 million.
Chairman’s Statement
“On behalf of the Board of Directors, I, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors which may render the condensed interim consolidated financial statements of the Group for the nine months period ended 30 September 2025 to be false or misleading in any material aspect.”
WONG TEEK SON
EXECUTIVE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
10 November 2025
Tone: The statement is factual, formal, and neutral, providing no forward guidance or explicit optimism/pessimism about future performance.
Risks, Trends, and Industry Commentary
- The Group operates in a highly competitive environment marked by price pressures, currency fluctuations, volatile raw material prices, and rising production costs.
- US tariffs remain a risk factor, and management continues to monitor their impact and mitigate related risks.
- No significant natural disasters, legal disputes, asset revaluation, or exceptional items are noted in the report.
- No IPOs, fundraising, share buybacks, or major corporate actions have occurred during the period.
Conclusion and Investment Recommendation
The overall financial performance for 3Q2025 is weak relative to the prior year, with significant declines in revenue, profit, and dividend payouts. Margins have been squeezed by industry competition and cost pressures, and the Group’s cash reserves are lower due to heavy investment in PPE and dividend distributions. The outlook remains challenging, with management acknowledging industry headwinds and macro risks.
Recommendations
- If you are currently holding Riverstone stock: Consider reducing your exposure or pausing on further accumulation until there are clear signs of margin recovery or demand stabilization. Continue to monitor quarterly results and industry developments closely.
- If you are not currently holding Riverstone stock: Exercise caution and wait for signs of improved sector dynamics or company-specific catalysts before initiating a position. The current trend does not favor aggressive entry, given declining earnings and dividends.
Disclaimer: This analysis is based solely on the latest reported financials and does not constitute investment advice. Investors should consider their own risk tolerance and conduct further due diligence before making any investment decisions.
View Riverstone Historical chart here
