KUALA LUMPUR – Hartalega Holdings Bhd’s net profit leapt to RM914.0 million in the second quarter ended Sept 30, 2021 (Q2 2021) from RM544.96 million in Q2 2020.
Revenue surged 49.4% to RM2.01 billion against RM1.34 billion previously due to higher sales revenue following the increase in average selling price (ASP), said the nitrile glove producer in a filing with Bursa Malaysia today.
In line with the growing rubber glove demand globally, the group said it will continue to expand its capacity in its Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang.
To date, eight out of 10 lines in Plant 7 have been commissioned. Upon full commissioning, Plant 7 will have an annual installed capacity of 2.7 billion pieces.
The construction for the upcoming expansion under NGC 1.5, is currently underway and the group targets to commission the first line by April 2022.
“NGC 1.5 includes four additional production plants which will contribute 19 billion pieces to the annual installed capacity,” said Hartalega.
With the completion of NGC 1.5, the group’s annual installed capacity will increase to 63 billion pieces per annum.
The average selling prices for gloves has been declining from its peak in the first half of the financial year moving into the second half of the financial year.
The tapering of average selling prices in recent months is due to the increasing supply from major glovemakers as well as moderating demand because of customers adjusting inventories in view of declining selling prices.
Post-pandemic, the sector is expected to undergo a structural step-up in demand on the back of increased glove usage from emerging markets with low gloves consumption per capita and heightened hygiene awareness. – Bernama, November 2, 2021
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