KUALA LUMPUR: Top Glove Corporation Bhd's net loss narrowed to RM61.8 million in the financial year 2024 (FY24) compared to RM925 million a year before, as sales volume to the US surged.
The glovemaker's revenue increased by 11 per cent to RM2.5 billion in the period from RM2.26 bilion previously.
The company in a statement today said the notably improved performance was attributed to increase sales volume as customers continued to replenish glove inventories, leading to higher utilisation rates and enhanced cost efficiency.
The group saw especially strong growth in the US where sales volume soared 120 per cent quarter on quarter, which was further driven by the high number of foreign manufacturers' gloves being placed on the US Food and Drug Administration's (FDA) import alert list. With the impending imposition of high tariffs by the US on China made medical gloves, the group anticipates a greater increase in sales volume growth in the quarters to come.
Top Glove managing director Lim Cheong Guan said the positive outcomes in the FY24 are strong indicators of market resurgence and the company is well positioned to ride the recovery wave.
"Our consistent progress has been driven by ongoing improvement initiatives, and with the continued support of our employees, the group is confident we are well on the path to profitability and sustainable growth," he added.
The group has proposed a bonus issue of up to 406 million warrants on the basis of one warrant for every 20 existing Top Glove shares, subject to shareholders' approval at the upcoming annual general meeting (AGM) in January 2025.
The warrants are exercisable anytime within five years from the date of issuance, the exercise price of which will be announced at a later date.
Top Glove said the proposed bonus issue of warrants offers opportunity to shareholders to increase their equity participation in the group, by exercising the warrants at a predetermined price during the tenure of the warrants, rewarding loyal shareholders for their continued support.
The exercise will also strengthen the group's capital base, enabling it to raise additional funds without incurring additional interest expense, as compared to bank borrowings.