PETALING JAYA: Top Glove Corporation Bhd saw its net profit drop by 17.4% to RM41.55 million in second quarter ended Feb28, 2014 (Q2 FY14), from RM50.32 million a year before, on the back of margin pressure from increased competition.

In a filing with Bursa Malaysia yesterday, Top Glove said the losses from its China operations amounting to RM5.4 million, has unfavourably impacted the group's bottomline as well.

"Also contributing to the decline were forex losses, arising from previously entered forward contract rates that were lower than prevailing market forex rates," it added.

The glove maker’s revenue also declined by 4.9% to RM548.27 million, from RM576.42 million a year ago, mainly due to the decline in the average selling price.

For the first six months, Top Glove's net profit decreased 14.8% to RM91.83 million, from RM107.81 million a year before. The group generated revenue of RM1.12 billion, which was 3.4% lower than RM1.16 billion a year ago.