Top Glove Q3 profit slides 31% to RM34.7 million despite higher revenue

[SINGAPORE] Malaysian glove maker Top Glove on Thursday (Jun 26) posted a net profit of RM34.7 million (S$10.5 million) for its third quarter ended May, 31 per cent down from a profit of RM50.7 million in the previous corresponding period.

Earnings per share for the quarter stood at 0.43 sen, down from 0.63 sen previously.

The decline in its bottom line came despite the group recording top-line growth for the period, with revenue up 30 per cent at RM830.3 million, from RM636.9 million in the year-ago period. 

Higher revenue for Q3 was driven by a 45 per cent year-on-year rise in sales volume, Top Glove said.

Operating expenses increased to RM821.9 million from RM671 million in Q3 FY2024, while finance costs rose to RM9.6 million from RM1.8 million.

The quarter’s earnings before interest, taxes, depreciation and amortisation fell 10 per cent on the year to RM117 million from RM130 million.

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Lim Cheong Guan, managing director of Top Glove, said: “Our Q3 FY2025 performance was impacted by pronounced headwinds, chiefly lower average selling prices, heightened competition, coupled with cost savings pass-through.”

Despite the headwinds, he maintained that the long-term outlook remains “promising” as gloves are an essential item in multiple sectors, with global demand expected to be sustained.

While evolving tariff actions and trade dynamics could limit near-term visibility, Top Glove said that it is “well-placed” to mitigate supply-chain risks and country-specific export risks because its customer base spans 195 countries. It has manufacturing facilities in Malaysia, Thailand and Vietnam.

Top Glove is also listed on the mainboard of the Bursa Malaysia Stock Exchange.

Shares of Top Glove ended Wednesday 2.2 per cent or S$0.005 lower at S$0.225.