KUALA LUMPUR: Hartalega Holdings Bhd recorded a higher net profit of RM120.2mil for the second quarter (Q2) ended Sept 30, 2018 from the RM113.7mil in the same period last year.
Revenue increased to RM712.2mil from RM584.6mil previously.
In a statement today, the company said the increase in top and bottom line results was attributable to additional production capacity, stronger demand for nitrile gloves, higher average selling prices and a 10.6% growth in sales volume.
Managing director Kuan Mun Leong said the company remained confident on the outlook ahead, given robust demand in the glove sector which continued to grow at 8%-10% per annum.
He said the global demand for rubber gloves continued to grow with the demand supply dynamics in a healthy balance, and nitrile gloves now accounted for 60% of Malaysia's rubber glove export.
“Tapping on this through our continuous expansion plans via our Next Generation Integrated Glove Manufacturing Complex (NGC), we expect to see earnings growth moving forward,” Kuan said.
In meeting the rising demand, the group said Hartalega NGC has begun commissioning Plant 5 in August 2018, with construction of Plant 6 to follow.
Plants 5 and 6 will have annual installed capacity of 4.7 billion pieces each.
Hartalega said a new plant, Plant 7, was also in the expansion pipeline and would be tailored to small orders and focusing more on speciality products, and would have an annual installed capacity of 2.6 billion pieces.
“Notwithstanding potential challenges arising from rising cost and heightening competition, the group remains optimistic of the prospects moving forward underpinned by ongoing NGC expansion and potential growth of its game-changing innovation, antimicrobial gloves market share,” it added. - Bernama