KUALA LUMPUR – Kossan Rubber Industries Bhd’s net profit surged to RM1.04 billion in the first quarter ended March 31, 2021 (1Q21) against RM64.8 million in the same quarter last year.
Revenue jumped 258.51% to RM2.19 billion during the quarter under review from RM611.46 million previously, thanks to higher contribution from the gloves division, the rubber glove maker said in a Bursa Malaysia filing today.
“The gloves division recorded revenue of RM2.09 billion in 1Q21, rising 281.75% from RM548.25 million in 1Q20.
“The strong performance by the gloves division, which contributes 95% and 98% of the group’s revenue and profit before taxation respectively in 1Q21 was mainly attributable to higher average selling price (ASP),” it said.
On prospects, Kossan expects the demand for gloves post-pandemic to continue undergoing structural growth as a result of increased healthcare standards and hygiene awareness in both the medical and non-medical sectors.
“As such, even though (the) ASP (is) projected to (be) moderate as the demand-supply imbalance eases, demand will remain above pre-pandemic levels,” it added. – Bernama, April 20, 2021
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