Business

Top Glove expects 30% jump in glove prices as pandemic rages on

This after company records sales revenue of RM4.8 billion in 1QFY21, reports The Edge

Updated 5 years ago · Published on 11 Dec 2020 2:02PM

Top Glove expects 30% jump in glove prices as pandemic rages on
Top Glove says it plans to shift its focus to nitrile gloves as they are said to deliver better profit margin. – AFP pic, December 11, 2020

KUALA LUMPUR – The world’s largest rubber glove manufacturer, Top Glove Corp Bhd, will be expecting a 30% increase of its glove average selling price (ASP) in the second quarter ending February 28, 2021, reported The Edge today.

This comes after the company recorded a sales revenue of RM4.8 billion between September 1 and November 30 (1QFY21), up 294% compared with 1QFY2020, and 53% quarter-on-quarter.

In a statement issued on Wednesday, the company’s sales figures were attributed to strong demand for gloves in both developing and emerging markets, owing to the ongoing global pandemic.

Group managing director Lee Kim Meow was quoted as saying in a press conference yesterday that the company plans to shift its focus to nitrile gloves as they are said to deliver better profit margin.

The Edge also reported that two of the company’s subsidiaries have a withhold release order imposed by the US Customs and Border Protection (CBP) since July.

Lee was quoted as saying that the company has been actively engaging with CBP to reverse the import ban.

Meanwhile, 19 investigation papers were opened into Top Glove on December 1 over its supposed failure to comply with the Workers' Minimum Standard of Housing and Amenities Act 1990 (Act 446).

Labour Department Peninsular Malaysia director-general Mohd Asri Abd Rahman had told a press conference that several offences were recorded after raids on six Top Glove subsidiary companies. – The Vibes, December 11, 2020

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