KUALA LUMPUR: Kossan Rubber Industries Bhd's net profit increased more than seven fold to RM523.49 million for the fourth quarter (Q4) ended December 31, 2020 from RM61 million recorded in the same quarter a year ago.
In a filing to Bursa Malaysia today, the company said this was due to higher volume of gloves sold and better average selling prices.
Group revenue in the same quarter more than doubled to RM1.31 billion from RM578.35 million.
For the full year, Kossan's net profit surged to RM1.09 billion from RM224.34 million, while revenue grew 64.78 per cent to RM3.65 billion from RM2.22 billion.
The group said the stronger results were mainly attributable to improved performance in the gloves and cleanroom divisions as compared with the previous year.
The glove maker declared a second interim dividend of three sen per share, together with a special dividend of eight sen per share, for a full-year total of 11 sen to be paid on March 17.
Kossan expects demand for gloves to continue to exceed supply in financial year 2021 (FY21).
"Post-pandemic, the demand for gloves will continue to undergo secular growth as a result of increased healthcare standards and hygiene awareness in the medical and non-medical sectors.
"With our new incoming capacity and efficiency improvements, the group expects the gloves division to deliver an even stronger performance in FY21," it said.