Top Glove says Russia-Ukraine war has minimal impact on its sales


KUALA LUMPUR: The war between Russia and Ukraine has minimal impact on glovemaker Top Glove Corporation Bhd as each nations’ contribution to the group’s sales worth was lower than 5 per cent.

“Basically, the required mitigation measures have already been put in place, however what’s extra necessary can also be to maintain in shut contact with our clients to make sure that we’ve minimal disruptions within the provide of products which can be crucial for humanitarian, medical, and different functions,” government chairman Tan Sri Lim Wee Chai mentioned after a digital media and analysts’ briefing on Top Glove’s outcomes for the second quarter ended Feb 28, 2022 (Q2 FY2022).

However, managing director Datuk Lee Kim Meow mentioned the group is being very cautious, particularly on the funds aspect, in view of the developments within the banking trade there.

“We have saved in contact carefully with our clients to seek out out what’s one of the simplest ways to deal with the scenario,” he mentioned.

Top Glove’s internet revenue fell 97 per cent to RM87.55 million within the second quarter, from RM2.87 billion a 12 months earlier, whereas its income shrank 73 per cent to RM1.45 billion from RM5.37 billion, as common promoting costs (ASPs) normalised nearer to pre-pandemic ranges.

Lee mentioned the ASPs are anticipated to be near bottoming out and the trade might see costs bettering within the subsequent few quarters.

Earlier within the briefing, Lee mentioned the corporate’s US sales quantity has jumped 220 per cent up to now as its sales continued to get better following the lifting of the US import ban in September 2021.

Top Glove merchandise, which had been banned on alleged pressured labour considerations, mentioned it has resolved all points associated to that in its operations.

“In September 2021, our sales to the US comprised 4 per cent of whole group international sales and by February 2022, sales to the US had grown to contribute 13 per cent in the direction of whole group international sales,” he mentioned.

“There are extra development alternatives for us to promote within the US,” he added. – Bernama

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