KUALA LUMPUR: Kossan Rubber Industries Bhd expects higher production and improved operating efficiency to drive growth this year after earnings rose 13% in the financial year ended Dec 31,2019 (FY19).
The glove maker posted a net profit of RM224.8mil, or 17.58 sen a share, on revenue of RM2.22bil.
Kossan said that last year has been characterised by higher cost and increased competition but the group continued to deliver an improved results.
“With the group’s expansion plans and new capacity coming on stream as well as continued improvement in operating efficiency, management is confident that FY20 will be a growth year for the group, ” it said in a filing with Bursa Malaysia.
“The group acknowledged and has taken precautionary measures on the seriousness of the Covid-19 epidemic. The impact, if any, on the group’s operations is closely monitored.”
Kossan’s glove division reported a 4.9% increase in revenue to RM1.96bil in FY19, while pre-tax profit was up 14.1% to RM250mil.
The improved performance was mainly attributable to the strong demand growth for the group’s glove products, with higher volume sold (+7.77%), as well as increased manufacturing efficiency and effective cost controls.
In FY19, the group’s nitrile to natural rubber production split was 79:21.