KUALA LUMPUR: The rubber glove sector is seeing initial signs of recovery and gradually moving from the post-pandemic market downturn.
Hartalega Holdings Bhd chief executive officer Kuan Mun Leong said while the current outlook for the industry remains challenging, the group is prepared for the challenges that lie ahead.
"Hartalega is well-positioned to adapt to the evolving operating environment, guided by our 5-Year Strategic Plan.
"It focusses on optimising operational and cost efficiencies, increasing automation, and upholding our commitment to environmental, social, and governance (ESG) best practices," he said in a statement.
Kuan acknowledged that external market headwinds are likely to persist.
However, he said with Hartalega's proven track record spanning over 30 years, the group is well-equipped to navigate the shifting landscape and strengthen its long-term resilience.
"We remain optimistic on the longer-term prospects for the rubber glove sector," he said.
Reflecting the group's commitment to providing sustainable returns to shareholders, the board proposed a first and final dividend of 0.35 sen per ordinary share for the financial year 2024 (FY24).
This represents a payout ratio of 60 per cent of the net profit after tax for the financial year under review.
Hartalega reported a profit after tax of RM20 million for its financial year ended March 31, 2024 (FY2024).
This marked a turnaround from the loss recorded in the previous financial year, reflecting the group's ability to weather through the tough industry landscape.
For its current financial year, Hartalega posted a higher profit after tax of RM32 million for the first quarter ended June 30, 2024 (1QFY25), rebounding from the loss after tax of RM51 million recorded during the corresponding period in the previous year.
Profitability improved, driven by the higher revenue of RM584 million, a 33 per cent year-on-year (YoY) increase, and supported by operating margin recovery during the first quarter.
Hartalega also achieved improved production efficiencies through higher plant utilisation and a better cost structure, driven by streamlined operations.
The company successfully decommissioned the Bestari Jaya facility and consolidated all production at its more advanced and efficient Next Generation Integrated Glove Manufacturing Complex (NGC).