KUALA LUMPUR: Hartalega Holdings Bhd returned to black in the first quarter of financial year 2025 (1QFY25), driven by the recovery in sales volume and increased average selling prices (ASP) during the period.
The glovemaker recorded a net profit of RM31.9 million compared to RM52.47 million net loss in the same period last year.
Its revenue jumped 33 per cent to RM584 million from RM440 million last year.
Chief executive officer Kuan Mun Leong said Hartalega is encouraged by the gradual improvement in demand despite the persisting headwinds on the back of strategic capacity rationalisation by key industry participants and depleting inventory stockpiles.
Additionally, he said the operational efficiency enhancement measures continue to yield positive results.
Despite the turnaround, Kuan said Hartalega was affected by shipment delays amid ongoing global shipment constraints.
He said the new normal in doing business was the fact that Hartalega had to be more prepared for the vagaries of the market uncertainties.
"Hence, all the more our five-year strategic plan keeps us grounded in terms of our areas of focus, which are optimising operational and cost efficiencies, increasing automation and maintaining our lead in social compliance and sustainability through our robust ESG initiatives," he added.
Hartalega will continue to strategically ramp up production capacity while being mindful of market dynamics, in anticipation of a more favourable demand environment.
"Despite ongoing external market pressures, we anticipate glove demand will continue its trajectory towards pre-pandemic levels and beyond, driven by growing global healthcare needs and hygiene awareness.
"Hartalega is well-positioned to capitalise on this upcoming market upturn," he said.