15 March 2018 / 12:03
In a filing to Bursa Malaysia today, Top Glove says part of the positive earnings was attributed to an increase in demand for natural rubber gloves, while the importance of having a balanced product mix comprising both natural rubber and nitrile gloves aligned to the market demand has also bore fruit.
KUALA LUMPUR: Significant growth in sales volume has driven Top Glove Corporation Bhd’s net profit for the second quarter ended February 28, 2018 to increase 32.2 per cent year-on-year to RM109.99 million from RM83.05 million recorded in the same quarter a year ago.
With the positive net earnings, revenue for the glove maker for the same quarter increased 12.6 per cent to RM958.44 million from RM851.54 million, as sales volume surged by an all-time high of 21 per cent.
The company said part of the positive earnings was attributed to an increase in demand for natural rubber gloves, while the importance of having a balanced product mix comprising both natural rubber and nitrile gloves aligned to the market demand has also bore fruit.
In a filing to Bursa Malaysia today Top Glove’s net profit increased 37.1 per cent to RM214.46 million from RM156.37 million, for the six months, while revenue increased 15.8 per cent to RM1.89 billion from RM1.64 billion.
Moving forward, the company would continue to pursue strategic expansion via the organic and non-organic routes.
“We are in the process of constructing two new manufacturing facilities, namely Factory 31 (operational by June 2018) and Factory 32 (operational by early 2019), which upon completion will boost the group’s total number of production lines by an additional 78 lines and production capacity by 7.8 billion gloves per annum,” it said.
Top Glove envisaged a challenging business environment ahead, characterised by higher operating costs.
Nonetheless, it said glove demand was expected to continue growing steadily on the back of increasing healthcare standards and awareness globally.
New Straits Times