Top Glove chairman Tan Sri Lim Wee Chai said the exceptionally good performance was largely attributed to continuous internal quality and cost efficiency improvements.
KUALA LUMPUR: Top Glove Corp Bhd
, which saw its net profit rose 7.51% to RM101.59mil in the fourth quarter ended Aug 31, has declared a final dividend of 10 sen per share.
The glove maker said the latest dividend would bring the total financial year ended Aug 31, 2018 (FY18) dividend payout to 17 sen per share, an increase of 2.5 sen or 17% over FY17, representing a net profit payout ratio of 50%. It added that the dividend would be subjected to shareholders’ approval at the upcoming AGM in January 2019.
In the fourth quarter, Top Glove’s revenue rose 34.8% to RM1.21bil, its highest ever sales revenue attained within a single quarter, compared with 902.41mil in the same quarter last year.
For FY18, Top Glove clocked record-breaking sales revenue of RM4.21bil, surpassing the RM4bil threshold and representing a 23.6% growth from FY17. Its profit before tax was also at an all-time high of RM522.7mil, an exceptional increase of 36.4% compared with FY2017, while sales volume (quantity sold) reached its peak, surging 26% year-on-year.
The group attributed its financial performance to its continuous pursuit of internal improvements. In particular, the application of advanced technology enabled quality and efficiency to be improved considerably, whilst also contributing to a reduction in manpower requirements.
Additionally, the strong demand growth also accounted for the higher sales revenue, with the resulting higher utilisation rate also leading to better profit before tax as well as EBITDA and margins for FY18.
Raw material prices for FY18 were mixed. Natural rubber latex prices averaged at RM4.51 per kilo, down 21.7% against FY2017, while the average nitrile latex price as US$1.13 per kilo, up 2.7% compared with the previous financial year.
“We are very pleased to have achieved another historical high with our best full-year performance yet, especially given the challenging operating environment. Our record results underline the effectiveness of our ongoing technology-driven improvement initiatives, which focus on quality and cost efficiency.
“We also credit our robust results to our high-performing team who are committed to delivering excellence in all they do,” executive chairman Tan Sri Lim Wee Chai said in a statement.
Top Glove said it would continue to pursue strategic expansion to ensure it is well-positioned to meet the robust global demand for gloves and achieve its ambitious Fortune Global 500 dream.
“In progress is the expansion of several existing facilities: F32 (Phases 1 & 2 to be completed early and end 2019 respectively), F33 (to be completed early 2019) and F5A (to be completed end 2019). Meanwhile, its newest factory F8A in Thailand, is scheduled to be operational early 2020,” Top Glove said.
It added that the expansion would boost the group’s total number of production lines by an additional 98 lines and production capacity by 9.8 billion gloves per annum.
“By 2020, Top Glove is projected to have 746 production lines and a production capacity of 69.1 billion gloves per annum. Top Glove is also looking to expand its operations to Vietnam and has entered into an agreement to acquire a piece of land for a factory which is expected to commence operations within the next two years,” Top Glove said.
It said it would also continue to explore inorganic expansion via mergers and acquisitions, as well as new set-ups in related industries in order to grow faster and more efficiently. The group also proposed to undertake a bonus issue of 1.28 billion new ordinary shares in Top Glove on the basis of 1 bonus share for every existing share held on the entitlement date, which was approved at the EGM held on Wednesday.
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