KUALA LUMPUR: Top Glove Corporation Bhd’s net profit increased 9.3 per cent to RM115.68 million in the second quarter (Q2) ended February 19, 2020 from RM105.79 million recorded in the same quarter a year ago.
In a statement today, the rubber glove manufacturer said the increase in net profit was achieved as the group continued to enjoy tax incentives from its ongoing expansion, as well as unutilised tax allowances from some of its subsidiaries.
Revenue in Q2 was 6.0 per cent higher at RM1.23 billion than RM1.16 billion recorded last year, attributed to steady sales volume growth.
It said in particular, there was a 14 per cent increase in sales volume from nitrile glove segment from Q2 2019.
For the first half of financial year ending August 31, 2020, Top Glove’s net profit increased 5.2 per cent to RM227.11 million from RM215.85 million, while revenue increased to RM2.44 billion from RM2.42 billion.
Top Glove executive chairman Tan Sri Dr Lim Wee Chai said the good performance is a testament to the effectiveness of the group's ongoing automation, digitalisation, quality and cost efficiency enhancement programmes.
"Top Glove will continue to expand its operations in line with the growing glove demand globally to ensure it is well-positioned to help protect and save lives, particularly in view of the ongoing outbreak of Covid-19.
"At the initial stage of the outbreak, sales orders came mainly from China, Hong Kong, Singapore and South Korea,” he said.
Dr Lim said however, the group has in recent weeks also received strong sales orders from Europe, US and other countries as well, following its rapid spread to other continents across the globe, which has seen the group’s sales order book double.
"The Group also anticipates that the declaration of the Covid-19 outbreak as a pandemic by the World Health Organisation (WHO) on March 12, 2020, will eventually result in the healthcare and other sectors requiring more medical supplies such as gloves and other essential items.
"With current utilisation levels above 90 per cent, Top Glove is able to further ramp-up production close to 100 per cent, to meet the surge in demand.
"Moreover, it has new capacity coming onstream with F2B and F5A having commenced operations, which will add a total of 24 lines and a capacity 3.2 billion pieces of gloves per annum, when fully operational,” he said.
Dr Lim said these will boost the group’s total number of production lines by an additional 150 lines and production capacity by 17.7 billion gloves per annum.
By December 2021, Top Glove is projected to have a total of 861 production lines and a production capacity of 91.1 billion gloves per annum.