Top Glove posts record revenue of RM1.26b in Q1

Singapore

STRONGER glove sales lifted results for Top Glove Corporation in its first quarter. Net profit increased 4.5 per cent to RM110.1 million (S$36.2 million) from the previous year, the group said on Monday.

For the three months ended Nov 30, revenue jumped 34.5 per cent to RM1.26 billion from the previous year. This was also its highest quarterly sales revenue to date. The expansion in revenue was due to the group's robust sales in both developed and emerging markets. The group recorded a growth in sales volume of 19 per cent year-on-year.

"The new capacity available from the newly completed factories and higher utilisation, coupled with ongoing internal improvements, resulted in better efficiency and profitability... However, higher interest cost from the funding for mergers and acquisitions and organic expansion has resulted in a lower profit before tax margin for this quarter," it said.

Earnings per share edged up to 4.31 sen from 4.17 sen in the previous year. Net asset value per share edged up to RM0.97 as at Nov 30, from RM0.94 three months ago.

Lim Wee Chai, Top Glove's executive chairman said: "We have commenced the new financial year 2019 on (a) healthy and positive note. It is not easy to keep delivering strong results amidst an increasingly challenging operating environment and this is largely the result of our concerted marketing efforts, and ongoing quality and efficiency enhancement programmes."

He expects the business environment to continue being challenging in the new year, in view of intensifying competition and cost increases. But industry prospects remain promising given that glove usage is still on the rise, and is set to grow by 10 per cent every year, he said.

Top Glove shares ended one Singapore cent or 0.5 per cent lower at S$1.98 on Monday.