SHARES of Top Glove Corporation soared after the Malaysian glove maker on Wednesday (Jun 19) reported a net profit of RM50.7 million (S$14.5 million) for the third quarter ended May 31, 2024, reversing from a loss of RM130.6 million in the same period the year before.
After the announcement, the company’s on the Singapore Exchange climb 9 per cent or S$0.03 to S$0.365, as at 2.30 pm. It has another listing on the Bursa Malaysia, and its stock there has risen 5.1 per cent or RM0.06 to RM1.23, as at 2.18 pm.
Top Glove’s profit was driven by stronger glove demand as customers replenished their glove inventories after clearing excess stock, said the manufacturer in a bourse filing.
“The resultant higher utilisation coupled with ongoing quality and cost optimisation measures also positively impacted the bottom line,” said the company.
This net profit translates into an earnings per share of 0.63 sen, compared to a loss per share of 1.63 sen in Q3 FY2023.
Revenue for the period was RM636.9 million, up 20 per cent from RM530.6 million.
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However, on a nine-month basis, the group remained in the red. It trimmed its net loss for the three quarters by 87.4 per cent to RM58.2 million, from RM463.5 million. Revenue for the period lowered 5.6 per cent to RM1.7 billion from RM1.8 billion.
The group noted that the average natural latex concentrate price was up by 20 per cent to RM6.77 per kilogram, while the average nitrile latex price rose 16 per cent to US$0.89 per kilogram.
Despite this increase, it was able to reduce its cost of production through multiple improvement initiatives, said Top Glove.
As glove demand grew, the group was also able to share out some of the cost increases with customers through upward revisions in average selling prices.
“In addition, the sale of excess land served to strengthen the group’s profit and cash flow position,” said the group.
