KUALA LUMPUR, Feb 8 ― Hartalega Holdings Bhd’s net profit declined to RM256.1 million in the third quarter ended Dec 31, 2021 (Q3 2022) from RM1.0 billion in Q3 2021.
Revenue decreased by 52.8 per cent to RM1.0 billion against RM2.13 billion previously, it said in a filing with Bursa Malaysia today.
“The lower revenue was mainly due to the decline in both average selling price (ASP) and sales volume, attributable to the lower sales demand and increased supply from major and new glovemakers,” it said.
For the nine months ended Dec 31, 2021 (9MFY22), Hartalega’s revenue rose by 57.4 per cent year-on-year to RM6.92 billion.
The world’s largest nitrile glove producer attributed its performance to the higher average selling price (ASP) of gloves in the first half of the current financial year, despite the higher cost of raw materials and the 21 per cent reduction in sales volume.
Subsequently, the group has declared a second interim dividend of 14.80 sen per share single tier for its financial year ending March 31, 2022, as per the entitlement date on Feb 23, 2022 — payable on March 9, 2022.
Meanwhile, in a separate statement, chief executive officer Kuan Mun Leong said the ASP of gloves has continued to decline from its peak in the first half of the financial year due to lower sales demand and increased supply from both major and new glove manufacturers.
Additionally, buyers have also continued to adjust their inventories as a result of the lower selling price, he noted.
“Furthermore, the one-off prosperity tax is expected to have a material impact on earnings in the final quarter of our current financial year,” he said.
Kuan said moving forward, Hartalega will continue to focus on its strategic long-term expansion plans to cater for the structural organic step-up in global demand for gloves, as glove usage is set to rise in the emerging markets on the back of growing hygiene awareness.
In view of the market supply and demand dynamics, the group will continue to expand its capacity via the Next Generation Integrated Glove Manufacturing Complex (NGC), he said.
“The construction for the upcoming expansion under NGC 1.5 is currently underway and the group targets to commission the first line by October 2022.
“With the completion of NGC 1.5, the group’s annual installed capacity will increase to 63 billion pieces per annum,” added Kuan. ― Bernama
Source: Malay Mail
