Higher tariff, wages dent Top Glove profits

Singapore

HIKE in natural gas tariff and higher minimum wage in the glove industry put a dent in profits for Malaysia-listed Top Glove Corporation, which has a secondary listing here, in its first-quarter results for FY2017, despite a 7 per cent growth in sales volume.

Net profit for the three months ended Nov 30, 2016, was down 42.9 per cent to RM73.3 million (S$23.6 million) year on year. Revenue for the group came in at RM785.6 million, down 1.8 per cent from a year ago, dragged by lower average selling price and a weaker US dollar. Correspondingly, operating expenses grew 8.6 per cent to RM703.9 million.