Top Glove profits dip despite strong Q4
For the full year 2017, ended 31 Aug, Top Glove’s revenue reached a record high of RM3.4 billion (€684 million), up 18% compared to the previous year.
The uptrend in sales came on the back of an increase in average selling prices, which arose from a surge in raw material prices, as well as a strengthening of the US dollar over the course of FY2017.
Additionally, higher sales of nitrile gloves, which have higher prices compared to other gloves, helped improve results.
However, post-tax profit fell by 8.2% to RM332.6 million compared to full year 2016, during which Top Glove said it “benefited from positive external factors of currency impact and lower raw material prices.”
The average natural rubber latex price was RM5.76/kg during 2017, 46.4% higher than the previous year, while the average nitrile latex price was $1.1/kg, up 11.9% compared to 2016, explained Top Glove.
The trend changed during the third quarter of 2017, the Malaysian group noted, with average natural rubber latex and nitrile latex prices falling 21.3% and 26.4% respectively.
The company posted a 25% increase in sales for the fourth quarter, at RM902.4 million, compared to the same quarter in 2016. Profit after tax also saw a 50% rise at RM98.2 million, compared with the same period last year.
The “exceptionally high” sales volume, said Top Glove, was partly due to customers replenishing in the fourth quarter following a lull in the third quarter due to higher raw material prices.