KUALA LUMPUR: Top Glove Corp Bhd posted a net profit of RM87.55mil within the second quarter ended Feb 28, 2022, as in comparison with RM2.87bil a 12 months earlier as common promoting costs (ASP) moved nearer to pre-pandemic ranges.
“Raw materials costs have been typically on a downward pattern, lowering at a slower tempo than ASPs, which resulted in margin compression.
“The group additionally needed to take care of will increase in different working prices together with utilities, manpower and chemical prices; in addition to intensifying competitors, with the brand new glove provide inflicting pricing stress in gentle of the profitable Covid 19 vaccine rollout globally,” stated Top Glove in a press release.
The world’s greatest glove producer stated gross sales income got here to RM1.45bil throughout the quarter, which was almost double what was recorded in the identical quarter in 2020.
It attributed this enhance to the resumption of normal glove stocking exercise by clients and as ASPs strategy pre-pandemic ranges.
It added that its US gross sales quantity has jumped 220% to this point because it continues to recuperate following the lifting of the US import ban in September 2021.
Top Glove stated it had anticipated a interval of adjustment and is ready for more difficult occasions forward because it transitions in the direction of an “previous regular” state of affairs.
“For the previous two years, we’ve been accustomed to delivering distinctive outcomes.
“While our 2QFY2022 outcomes should not as sturdy as we wish them to be, that is to be anticipated because the pandemic recedes and it’s a part of the enterprise cycle.
“Having been within the glove enterprise for 31 years, we’ve seen many such cycles and our expertise has ready us properly to undergo this one,” stated Top Glove managing director Datuk Lee Kim Meow.
As at Feb 28, 2022, the group had net money of RM656mil and net property of RM6.95bil.