Hartalega posts nine-month net profit of RM89.2mil 

KUALA LUMPUR: Hartalega Holdings Bhd recorded a net loss of RM31.91 million in the third quarter (Q3) ended December 31, 2022 from a net profit of RM259.06 million last year.

This brought Hartalega's nine months profit to RM89.2 million, from RM3.43 billion net profit a year ago, on revenue of RM1.9 billion, which was 72.7 per cent lower than RM6.92 billion in 2021. 

In Q3, the company's revenue fell more than double to RM461.84 million in from RM1.01 billion a year ago. 

Hartalega said this was a result of the significant moderation of average selling price (ASP) and lower sales volume, along with higher energy and labour costs. 

Additionally, competition continued to intensify in the glove sector, with softer sales demand owing to excess glove inventories and stock adjustment in the supply chain, further affecting the company's performance. 

Hartalega chief executive officer Kuan Mun Leong said the company would continue to align its Next Generation Integrated Glove Manufacturing Complex (NGC) 1.5 expansion plan with the current market supply and demand dynamics.

Beyond this, Kuan said the company was focused on taking a long-term view and was optimistic on prospects for the sector over the long run. 

"Once market dynamics reach an equilibrium, post-pandemic growth in global demand is expected on the back of increased glove usage.

"This is particularly in emerging markets with a low glove consumption base, as well as improved hygiene and health awareness among healthcare practitioners," he said. 

With this in view, Kuan said Hartalega would continue to reinforce its foundation to be well-prepared to cater to these future prospects.

"Alongside this, the company will also progressively enhance our sustainability and social compliance practices as part of our Environmental, Social and Governance (ESG) agenda, as we strive to consistently raise the bar for ESG practices within the glove manufacturing industry," he added.