Hartalega swings to profit as sales grow 40%

Kuala Lumpur – Malaysian rubber gloves manufacturer Hartalega returned to profit during the year ended 31 March, helped by higher sales and operational efficiencies.

The group posted an operating profit of RM54 million (€11.2 million) for the 12-month period, up from a loss of RM23 million reported in the previous fiscal year.

Sales for the full year grew 41% year-over-year to RM1.8 billion, Hartalega announced 6 May.

The gloves manufacturer linked the significant revenue growth to a 40% increase in sales volumes and higher average selling prices.

Profitability, meanwhile, improved marginally despite the significant revenue growth and improved production efficiencies.

Hartalega linked the setback to “lower other operating income and adverse foreign exchange fluctuations during the year, which contributed to margin compression.”

Commenting on the results, Hartalega CEO Kuan Mun Leong said the group's full-year performance reflected encouraging signs of recovery for the sector.

But he cautioned that the environment remained volatile amid oversupply and pricing pressure.

However, the Hartalega CEO noted that the escalating US-China trade tensions could potentially serve as “a catalyst” for Malaysian manufacturers to regain export market share in the US.