Kuala Lumpur – For the first quarter its fiscal year 2022, Hartalega Group posted a 324% year-on-year rise in sales revenue, to RM3.90 billion (€ million), the group reported 3 Aug.
The jump in sales was mainly due to the increase in average selling price as well as higher sales volumes over the three months to 30 June, said the Malaysian gloves maker.
Earnings figures were even more impressive, with profit before tax coming in 955% higher than in the same three months of last year, at RM 2.61 billion.
Hartalega linked the almost 10-fold increase to the higher sales revenue and lower utilities expenses, partly offset by an increase in raw material price.
Commenting on prospects and targets for fiscal 2022, the group said it was progressing "In line with the growing rubber glove demand globally [and] will continue to expand its capacity in NGC, Sepang."
To date, eight out of 10 lines at plant 7 on the NGC site have been commissioned. Upon full commissioning, this plant will have an annual installed capacity of 2.7 billion pieces.
In addition, construction for the upcoming expansion, NGC 1.5, is currently underway and the group aims to commission the first line by December 2021.
The NGC 1.5 expansion plans include four additional production plants, which will contribute 19 billion pieces to the annual installed capacity.
With the completion of NGC 1.5, the group said its annual installed capacity will increase to 63 billion pieces per annum.
On the global front, Harta noted that the delta variant of the virus was driving surges of new infections worldwide.
"As such, the demand for medical supplies, such as gloves, is expected to remain elevated in the immediate term," the group stated.
On the other hand, average selling prices for gloves have been declining from its peak moving into second half of the year.
Post pandemic, the sector is expected to undergo a structural step-up in demand on the back of increased glove usage from emerging markets with low gloves consumption per capita and heightened hygiene awareness.
To safeguard against disruptions to its manufacturing operations, Harta said it will continue to enforce Covid-19 preventive measures to minimize the risk of infection among its workers in Malaysia.
Measures include improved segregation, social-distancing, awareness programme, entry-screening procedure, installing thermal scanners and staggered shift hours.