SINGAPORE (June 16): Top Glove Corporation Bhd posted a 24.4% rise in 3Q earnings to MYR 77.7 million ($25.2 million) from a year ago.
Revenue for the 3Q ended May increased 29.3% to RM869.6 million. Profit after tax came in higher at RM77.5 million notwithstanding the spike in both natural rubber latex and nitrile latex prices.
Sales volume fell 1% following an increase in average selling price (ASP), resulting from the upsurge in raw material prices, which caused orders to be deferred.
In 3Q, the average price of natural rubber latex escalated by 79.2% to RM7.06/kg. The average nitrile latex price also rose 41.1% to US$1.34/kg ($1.86/kg).
The price of natural rubber latex price has since decreased to RM5.56/kg today.
Despite unfavourable conditions, Top Glove has attributed its good performance to ongoing improvements throughout its manufacturing process, which has enabled the group to manage its costs efficiently. The group says its good relationship with customers also allowed the sharing of cost increases.
Lim Wee Chai, Top Glove Executive Chairman, says, “We have delivered growth in Profit year-on-year, despite sharp increases in manufacturing costs and reduced sales volume. This can be attributed to our consistent focus on internal improvements, which has enabled us to manage our costs well and continue producing quality gloves”.
Top Glove’s expansion plans include the construction of three new manufacturing facilities in Klang. Upon completion, the factories will boost the group’s total number of production lines by an additional 106 lines and production capacity by 10.6 billion gloves per annum.
In May, the group had acquired two glove factories located in Nilai and Muar with a combined production capacity of 1.1 billion gloves per annum. These acquisitions are targeted to be completed by August.
Top Glove has declared an interim dividend of 6 sen, payable on July 17.
Shares of Top Glove in Singapore are up 1 cent by $1.78.
