GLOVE manufacturer Top Glove Corporation on Wednesday (Mar 20) narrowed its losses by 68.9 per cent for the second quarter ended Feb 29, 2024, with a net loss of RM51.2 million (S$14.7 million), from RM164.7 million in the corresponding year-ago period.
This translated to a loss per share of 0.64 sen, falling from 2.06 sen in Q2 FY2023.
The group attributed the improved results to its ongoing quality and cost optimisation initiatives, coupled with operational enhancements it previously laid out in its turnaround plan.
Revenue for the period, however, fell 11 per cent to RM550.3 million, from RM618 million year on year.
Compared to the previous quarter, Top Glove’s revenue rose 12 per cent from RM493 million. Its net loss also narrowed 12 per cent on-quarter from RM58 million.
On a half-year basis, the group’s revenue lowered 17 per cent on-year to RM1 billion from RM1.3 billion.
Its H1 net loss shrank 67.3 per cent to RM108.9 million, from RM332.9 million in the year-ago period.
Reviewing its results, the group said sales volume strengthened 18 per cent against the preceding quarter as customers placed new orders following the depletion of excess inventory.
The increase provides a good indication of glove demand picking up, it added.
“The uptrend in sales orders was further spurred by the progressively narrowing price gap, which has seen Top Glove achieve parity in average selling prices (ASPs) with its overseas peers,” it said.
However, it also noted that natural rubber latex concentrate prices rose at a much faster rate, spiking 15 per cent and causing a mismatch with ASPs. This was mitigated by the growth in sales volume.
The increase in sales volume has led to the group maintaining a positive mid to long-term outlook on the glove industry, as gloves are “an essential, single use item in the healthcare, industrial and F&B sectors with no viable replacement”.
After the results were released, shares of secondary-listed Top Glove rose 2.2 per cent or S$0.005 as at 1.14pm.
