KUALA LUMPUR: Flexidynamic Holdings Bhd reported a net profit of RM0.98 million for the second quarter of 2024 (2Q24), marking a recovery from a net loss of RM396,000 in the same period last year.
However, the company's revenue dropped by 41.6 per cent to RM7.7 million, down from RM13.3 million due to the completion of significant overseas projects in the prior year.
The profit was largely due to the recognition of deferred tax assets from customer down payments.
Flexidynamic said although the revenue declined, it saw an increase in demand for repair and maintenance services, system upgrades, and equipment enhancements from its existing customers.
"This signals a positive market sentiment and the beginning of a rebound in the glove manufacturing sector," it said.
Flexidynamic managing director Tan Kong Leong said the company is optimistic about the long-term prospects of the glove industry.
"Increased hygiene awareness, especially in emerging markets with low glove consumption, is expected to drive demand.
"Our strategic focus on operational efficiency and cost management has allowed us to effectively leverage this recovery, leading to a substantial increase in profitability," he added.
Tan said the company's recent entry into gamma radiation sterilisation services, in partnership with Gammatech, not only supports their current customers in the glove industry but also creates new opportunities in sectors like pharmaceuticals, food processing and packaging.
"By offering these services, we are poised to expand our market reach and deliver even greater value to our shareholders," he added.