KUALA LUMPUR: Hartalega Holdings Bhd reported a net profit of RM41 million for the first half of FY2025, a turnaround from the RM22 million loss in the same period last year.
The improvement was driven by higher revenue of RM1.2 billion, up from RM892 million, mainly due to increased sales volume.
However, for the second quarter ended Sep 30, 2024, net profit was down to RM9 million due to higher raw material costs and adverse foreign exchange impacts from a weaker US Dollar against the ringgit.
Despite this, the company posted a higher revenue of RM652 million, up from RM452 million in the previous year.
The company has declared a first interim dividend of 0.56 sen a share for the financial year ending March 31, 2025.
"The second quarter presented a complex operating environment, with increased costs associated with our strategic capacity expansion initiatives, particularly as we ramp up new production lines to meet anticipated future demand. While this temporary cost pressure, coupled with foreign exchange losses from the US dollars abrupt depreciation against ringgit, have impacted our short-term profitability, we remain focused on our long-term growth trajectory," Hartalega chief executive officer Kuan Mun Leong said in a statement.
He said as part of its long-term growth strategies, Hartalega has begun operations at its new Next Generation Integrated Glove Manufacturing Complex (NGC 1.5) in Sepang, which aims to enhance production efficiency.
The company's 5-year strategic plan focuses on technological advancements, cost optimisation, and sustainability, positioning Hartalega for future market opportunities as global healthcare demand remains strong.