Shah Alam, Malaysia – Top Glove Corp. has reported record results for the quarter ended 31 May and is looking to significantly expand production capacity to meet high demand resulted from Covid-19 pandemic.
Sales rose 42% year-on-year to RM1.7 billion (€354 million) in the third quarter, marking the company’s highest quarterly revenue, Top Glove said 11 June.
Profit before tax (PBT) rose 413% year-on-year to RM422 million, while net profit was up 365% at RM350 million.
Sales volume grew by 25% during the three-month period, which was saw the widespread outbreak of Covid-19 across the globe.
Top Glove linked the “extraordinary performance” to “unparalleled growth” in volume, on the back of the pandemic.
Monthly sales orders, it said, went up by some 180%, resulting in long lead times, which went up from 40 days to around 400 days.
“Orders placed now would only be delivered over a year later,” the company noted.
In response to high demand, the Malaysian group said it increased utilisation rates at its plants from a pre-Covid level of 85% to above 95% in the third quarter.
Furthermore, Top Glove said it became “the world’s largest manufacturer of nitrile gloves” during the quarter, in addition to being the world’s largest manufacturer of natural rubber gloves and surgical gloves.
The glove maker said it was planning to expand production capacity in an effort to remain well-positioned to meet global glove demand, which it said is now expected to grow 12% to 15% per annum due to Covid concerns.
To this end, Top Glove said it had earmarked RM3 billion to build 450 new production lines by 2026, creating capacity for the manufacture of 60 billion pieces of gloves over the next six years.