Top Glove quarterly profit surges 138% on cost control measures

[KUALA LUMPUR] Top Glove, the world’s largest rubber glove manufacturer, reported a 138 per cent surge in third-quarter profit after tax on Thursday (Jun 18), as the company’s control measures paid off amid rising raw material prices.

Timely average selling price adjustments in alignment with escalating raw material costs supported earnings. Nitrile latex, a key raw material, availability has stabilised as of June, although the business landscape remains dynamic.

The company benefits from a diversified supplier network across multiple countries, providing resilience in sourcing and continuity of supply.

Flexible manufacturing capabilities and ongoing improvements in quality and cost efficiency have positioned it to respond to movements in supply conditions.

Profit after tax for the third quarter ended May 31 surged to RM81 million (S$25.5 million) from RM34.7 million in the same period last year. Revenue for the quarter rose to RM1.09 billion from RM830.3 million.

Lim Jin Feng, company joint managing director, said the recent developments in the Middle East provided valuable experience in managing geopolitical challenges and mitigating supply disruptions.

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“While the environment ahead may be uncertain, we continue to focus on core priorities within our control: glove quality, cost efficiency and strong execution. Gloves are an essential product across healthcare, industrial as well as food-related sectors, and demand remains resilient,” said Ng Yong Lin, also its joint managing director.

Shares of the company have risen 15.5 per cent so far this year.

Top Glove operates 51 factories across Malaysia, Thailand, and Vietnam, with an annual production capacity of 95 billion gloves. REUTERS