KUALA LUMPUR – Hartalega Holdings Bhd’s net profit for the first quarter ended June 30 jumped to RM2.26 billion from RM219.72 million, while its revenue soared to RM3.90 billion from RM920.08 million.
Hartalega chief executive officer Kuan Mun Leong in a statement today said this is achieved on the back of higher average selling prices and increased sales volume, although it is partially offset by the increase in raw material prices.
“Moving forward, while average selling prices for nitrile gloves have been declining, global demand is expected to remain heightened, particularly due to new Covid-19 variants affecting countries worldwide.”
In the long term, Kuan said the structural step-up in the glove sector will further spur demand growth, driven by increased glove usage from emerging markets with low glove consumption per capita and increased hygiene awareness.
To cater to this demand growth, the group will continue with its expansion plans via its Next Generation Integrated Glove Manufacturing Complex (NGC) and NGC 1.5, he added.
“To date, eight out of 10 lines of Plant 7 of the NGC have been commissioned. Once completed, Plant 7 will have an annual installed capacity of 2.7 billion pieces.”
He said construction for NGC 1.5 is underway, with the first production line targeted to be commissioned by December.
“Once NGC 1.5 is completed, it will comprise four manufacturing facilities contributing 19 billion pieces of gloves to our annual installed capacity, which is expected to increase to 63 billion pieces over the next two to three years.”
On Covid-19, he said “over 90% of our employees, including migrant workers, have received the first dose”. – Bernama, August 3, 2021
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