KUALA LUMPUR – Top Glove Corp Bhd continued to see a drop in net profit after recording RM102 million in its second quarter this year ended February 28, compared to RM185.72 million in its first quarter.
Revenue also fell to RM1.45 billion from RM5.36 billion compared to the same quarter last year.
In a statement today, the company said its softer financial performance was affected by the price of raw materials; operating costs such as utilities, manpower, and chemical costs; and intensifying competition, with the new glove supply causing pricing pressure in light of the global Covid-19 vaccine roll-out.
It added that on a half-yearly basis, its 1HFY2022 revenue amounted to RM3.03 billion while net profit registered at RM305 million.
The company’s sales to the United States have been on the path to recovery since September, with sales volume growing sharply by 220%, it added.
As at February 28, the group maintained a net cash position of RM656 million and net assets of RM6.95 billion.
Yesterday, Top Glove delayed its plans to go ahead with the US$347 million (RM1.5 billion) listing on the Hong Kong stock exchange (HKEX), citing “changing developments in the industry” and current equity market conditions.
“Glove demand will still continue to grow steadily, albeit not at the accelerated but unsustainable pace during the pandemic,” said Top Glove managing director Datuk Lee Kim Meow.
Separately, the group appointed two new independent non-executive directors to its board – Datuk Kong Sooi Lin and Ngo Get Ping.
Kong in February was appointed IOI Corp Bhd’s independent and non-executive director. She is also an existing director in AMMB Holdings Bhd and Eco World International Bhd.
Ngo is on the boards of RHB Singapore and OSK Ventures International Bhd. – The Vibes, March 9, 2022
