PETALING JAYA: Net profit for the fourth quarter rose 29.6% for Kossan Rubber Industries Bhd to RM59.5mil, on the back of improved performance in all three of the group’s divisions.
For the three-month period ended Dec 31, the group saw revenue rising 23.36% to RM589.4mil from a year ago, also due to improved performance in the glove, technical rubber products (TRPs) and cleanroom divisions.
In its filing with the stock exchange, the group said the glove division’s revenue rose 25.36% during the period, while profit before tax (PBT) increased 16.72% on the back of continued strong demand for the products, higher average selling prices and higher volume sold.
“This was achieved despite the increase in natural gas and nitrile prices,” it said.
For the TRP division, the revenue of RM50.38mil was 19.42% higher from a year ago, while PBT soared 91.31%, mainly due to increased sales deliveries and sales of higher-margin products.
As for the full year ended Dec 31, Kossan Rubber recorded its highest ever revenue, surpassing the RM2bil-mark to RM2.14bil, an increase of 9.5% from the previous year. PBT was RM249.33mil, a 9.21% increase year-on-year, mainly attributed to the improved performance in the glove and TRP divisions.
Revenue for the glove division rose 9.3%, while PBT increased 4.7% on the back of strong demand growth for the products, with higher average selling prices and higher volume sold.
This was supported by increased manufacturing efficiency and effective cost controls, the group said.
The performance, it said, was achieved despite the increase in natural gas and nitrile prices, as well as the less favourable US dollar/ringgit exchange rate.
The TRP division, meanwhile, saw revenue rising 13.9%, while PBT soared 75.5% mainly attributed to increased sales deliveries and sales of higher-margin products.
Moving forward, the group said demand for its glove products continued to be strong.
“The year 2018 has been characterised by cost increases and a rising competitive environment, and the group expects this year to be no different.
“With the group’s expansion plans and new capacity coming on-stream, continued demand for our gloves, a clear focus on cost savings, product quality and innovation, as well as improvements in production technology and operating efficiency, management is confident that financial year 2019 would be a growth year for the group,” it added.