KUALA LUMPUR – Top Glove Corporation Bhd’s net profit surged to RM2.04 billion for the third quarter (Q3) ended May 31, 2021, up from RM347.90 million in the same period last year.
In a filing with Bursa Malaysia today, the company said its revenue soared to RM4.16 billion from RM1.69 billion previously, attributable to the continued demand for gloves worldwide due to the Covid-19 pandemic.
In a separate filing, the world’s largest glovemaker declared a third interim dividend of 18 sen, consisting of a single-tier third interim dividend of 12.70 sen per share and a special single-tier third interim dividend of 5.30 sen per share.
“The ex-date for the dividend is June 23, 2021, while the payment date is July 4, 2021.”
Top Glove said the total dividend declared for the cumulative nine-month period ended May 31 (9M FY2021) is 59.7 sen per share, representing a 406% increase from the full-year dividend for 2020 of 11.8 sen per share.
For 9M FY2021, the company’s net profit skyrocketed to RM7.26 billion from RM575.0 million previously, while revenue jumped to RM14.29 billion from RM4.13 billion.
The group’s net cash position as of May 31 remained strong at RM4.23 billion.
Top Glove said its sales revenue and profit after tax are softer quarter-on-quarter (q-o-q), easing 22% and 29%, respectively, and its sales volume, or quantity sold, declined 4% q-o-q.
“The softer q-o-q results for Q3 are due to declining average selling prices, in line with glove market pricing trends, as well as the impact of glove sales from Malaysia to the United States, which we are working closely with US Customs and Border Protection (CBP) to speedily resolve,” said managing director Datuk Lee Kim Meow.
On raw material prices, the firm said they rose in the quarter under review, with average natural latex concentrate prices up by 8% to RM6.31 per kg, while nitrile latex prices increased marginally by 0.4% to US$2.31 per kg q-o-q.
“Going forward, raw material prices are expected to be on a downtrend, which will benefit the group,” said Top Glove, adding that global glove demand is expected to remain resilient as usage continues to rise given the ongoing health crisis. – Bernama, June 9, 2021
