Shah Alam, Malaysia – Top Glove Corp. Bhd continued to deliver strong results over the three months to end of May, despite a decline in rubber glove prices.
Third quarter sales rose 147% to RM4.16 billion (€835 million), while profit after tax came in at RM2.06 billion, 490% higher than a year ago.
On a nine-month basis, sales were up 246% year-on-year at RM14.29 billion, with a “healthy” profit of RM7.35 billion, 11.7 times higher than last year.
Top Glove noted that sales and profit were softer quarter-on-quarter, easing 22% and 29% respectively.
The manufacturer linked the drop primarily to a 16% decline in the average selling prices of gloves compared to the February peak.
Furthermore, sales volume fell 4% quarter-on-quarter mainly due to a temporary halt in shipments to the US.
According to Top Glove, raw material prices rose during the quarter, affecting profit margins.
Average natural latex concentrate prices were up by 8% to RM6.31/kg, whilst nitrile latex prices increased marginally by 0.4% to $2.31/kg quarter-on-quarter.
Going forward, Top Glove said, raw material prices are expected to be on a downtrend.
“We are pleased that the group has done well despite a tough environment, weathering several difficulties to deliver a commendable performance," said Dato’ Lee Kim Meow, managing director of Top Glove said,
He attributed the performance to "technological advancements towards Industry 4.0, as well as R&D and innovation, and most importantly, good people."
The softer sequential results, he went on to say, were "due to the declining ASPs in line with glove market pricing trends, as well as the impact of glove sales from Malaysia to the US."
The company, he said, is "working closely with the US CBP to speedily resolve [the agency's withhold order].”