Top Glove Q4 profit surges 352.6% to RM157.6 million as demand-supply balance improves

[SINGAPORE] Top Glove reported a 352.6 per cent surge in net profit to RM157.6 million (US$38.6 million) for its fourth quarter ended Aug 31, from RM34.8 million for the same period a year earlier.

The Malaysian rubber glove manufacturer, which has a primary listing on Bursa Malaysia and a secondary listing on the Singapore Exchange, said in a filing on Tuesday (Oct 6) that the surge was driven by higher global glove demand and tightened supply from the Middle East conflict.

Revenue rose 39.7 per cent year on year to RM1.25 billion, from RM893.6 million.

The group’s net profit included a goodwill impairment of RM66 million, which it said “had no impact on cash flow”.

For the full financial year, net profit surged 193.3 per cent to RM308 million from RM105.3 million in FY2025. Full-year revenue grew 21 per cent to RM4.23 billion from RM3.49 billion the previous year.

Demand boost

Top Glove attributed its performance to steady growth in global glove demand which outpaced supply growth.

Lim Cheong Guan, corporate director at Top Glove, said during an earnings briefing that global demand is expected to exceed 400 billion pieces in 2026.

The group currently operates at a capacity of 95 billion pieces a year from its 39 factories in Malaysia, Thailand and Vietnam.

It has a total of 51 factories in the three markets, and also makes other products including dental dams and face masks.

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“Demand and supply growth are now becoming more balanced, contributing to a healthier market environment and providing a more stable foundation for margin recovery after several challenging years,” Lim said.

Top Glove said that the ongoing Middle East crisis has tightened raw material and glove supply, supporting cost pass-through and margin improvement.

“As long as the demand and supply is healthy or reaching equilibrium, there’s a high chance any cost increase can be passed on to the customers,” Lim noted.

The improved profitability enabled Top Glove to maintain competitive pricing, driving strong sales volume growth of close to 30 per cent and “higher capacity utilisation”.

Process automation also helped mitigate industry-wide manpower shortages, the group said. It added that it will progressively reactivate idle manufacturing facilities “as manpower permits”.

The group strengthened its balance sheet, turning around to a net cash position of RM141 million in FY2026, from a net debt position of RM267 million in FY2025.

Growth expected to continue

Top Glove’s executive chairman Lim Wee Chai said that the “continued demand for gloves provides a solid foundation for long-term growth”.

He said that the group is entering FY2027 with a “strengthened financial standing (and) operational agility”, despite ongoing dynamic market conditions.

He added that profit growth is likely to be sustained into FY2027, as the global market is expected to continue growing.

The board declared a tax-exempt final dividend of RM0.015 a share for FY2026, payable on Dec 15. This brings the group’s total dividend outlay for the full year to RM120 million.

Looking ahead, Top Glove said that prospects for the glove industry remain promising due to steady demand in the healthcare, industrial and F&B sectors.

“The essential nature of gloves enables the group to pass through input cost fluctuations effectively to protect margins,” it added.

However, the group noted that a 30 per cent increase in Malaysia’s natural gas tariff in October will increase cost per carton by about 2 to 3 per cent.

It added that it is implementing cost-saving measures, such as heat-energy efficiency partnerships with vendors, to safeguard margins and maintain its cost leadership.

Shares of Top Glove rose 14.6 per cent or S$0.035 to close at S$0.275 on Tuesday, after the results were announced.