Top Glove quarterly sales hit record RM1.26bil


On Monday, Top Glove announced it had listed the EBs with the principal amount being US$200mil on Bursa Securities (under the exempt regime) and Singapore Exchange Trading.

KUALA LUMPUR: Top Glove Corp Bhd reported its best ever quarterly revenue, but earnings growth was muted due to the high cost of buying surgical glove Aspion Sdn Bhd and aggressive factory expansion.

Net profit in the first quarter ended Nov 30 rose 4% to RM110mil, as sales soared to RM1.26bil. Total volume sold increased 19%, the company said in a statement on Monday.

“Additional capacity available from newly completed factories coupled with higher utilisation, as well as ongoing operational improvements,

resulted in better efficiency,” the company said.

Meanwhile, lower average raw material prices also boosted margins and its profitability, with Ebitda margins improving to 16.3% from 16.1% in 1QFY18.

“However, higher interest costs from the funding for M&As and organic expansion, and a lower contribution from the vinyl glove segment following intensifying competition in the vinyl glove segment as supply from China normalised, resulted in a softer profit before tax margin for this quarter,” it said.

Top Glove has 40 factories and the capacity to produce 60.5 billion pieces a year. By the end of 2020, Top Glove is projected to have 796 production lines and a production capacity of 75.3 billion gloves per annum.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

RHB group exits asset management business in Indonesia
DNeX completes Silterra acquisition
Serba Dinamik nominates Nexia as new external auditor
Strong demand for handformers lifts ES Ceramics' revenue and profit
KLCI falls 10.91 points as regional markets slip
The path to net zero should be an integrated initiative
RAM: No credit concerns due to Edra Energy's delay in completing power plant
Gross fixed capital formation shrank 14.5% to RM281.1b
China shares tumble on regulatory clampdown; education firms selloff heavily
Oil falls US$1/bbl as coronavirus, floods threaten demand

Stories You'll Enjoy


Vouchers