KUALA LUMPUR: Top Glove Corp Bhd
, which posted a net profit of RM185.71mil within the first quarter ended Nov 30, 2021 (1Q22) has declared a dividend cost of 1.2 sen per bizarre share.
The dividend cost amounted to RM96mil. The ex date for the dividend is Dec 24, 2021 whereas the cost date is Jan 10, 2022.
Revenue within the first quarter fell to RM1.58bil from RM4.76bil a 12 months prior. Its net profit through the quarter was considerably lower in contrast with RM2.35bil a 12 months in the past.
Top Glove’s net money place as at Nov 30, 31 stood at RM1.06bil.
The group stated the softer efficiency was primarily attributed to normalising common promoting costs (ASPs) and glove demand following mass vaccine rollout on a worldwide scale, whereas clients remained cautious on replenishing orders.
In addition, Top Glove stated uncooked materials prices diminished at a a lot slower tempo compared to glove ASPs, thereby impacting its profit.
However, the glove producer stated the excess in glove provide would doubtless be offset partially, by the regular and constant progress in international glove demand.
“Glove demand, which continues to be driven by strong market fundamentals, was already growing at a rate of 10% yearly pre-Covid and is expected to increase further even after the pandemic recedes, on the back of heightened glove usage and hygiene awareness.
“In addition, the group is gradually regaining its exports from Malaysia to the US, which is expected to improve sales volume in the quarters to come,” it stated.
Top Glove stated uncooked materials costs are on a downtrend quarter on quarter, with common pure latex focus costs weakening by 8% to RM5.09 per kg.
Meanwhile, nitrile latex costs decreased by 19% to USpercent1.79 per kg and are anticipated to proceed declining at a a lot increased proportion going ahead.
Managing director Datuk Lee Kim Meow stated: “The team’s efforts to deliver these results against a challenging environment with headwinds, are to be commended.”
“Having been in the glove industry for 30 years, we know this is part of the business cycle and have prepared for it.
“We have built up our reserves over the last two years which will enable us to go through leaner times and leverage any M&A opportunities which may arise,” he stated.
“While times may be tough now, we are confident good times will come again. We believe even in the hardest of times, there is also opportunity, as long as we continue to stay healthy and maintain a positive expectation of the future,” Lee stated.
In mild of the challenging enterprise panorama, Top Glove might be cautious and defer its growth plans to be according to market traits and the demand-supply state of affairs.
“The group’s growth strategy will include a combination of organic expansion, inorganic expansion and strategic investments.
“By Dec 31, 2025, Top Glove is projected to have a total of 59 factories comprising 46 glove factories and 13 other factories, 1,486 glove production lines and a glove production capacity of 201 billion gloves per annum,” Top Glove stated.
On its outlook, Top Glove expects the enterprise surroundings might be challenging within the instant time period, as competitors continues to accentuate amidst moderating glove demand.
“Nonetheless, the company remains cautiously optimistic on its industry outlook, given that global demand for gloves as an essential item will continue to grow steadily at a rate of more than 10% per annum even after the pandemic recedes,” it stated.
