KUALA LUMPUR: Kossan Rubber Industries made RM542mil in net profit in the fourth quarter ended Dec 31 on strong glove demand, lifting its full year earnings to above RM1bil.
The company has declared a second interim dividend of 3 sen a share and a special payout of 8 sen a share.
Kossan, in its outlook, predicted FY2021 to be "an extraordinary year," as demand is projected to remain robust.
"For the Gloves division, demand continues to exceed supply and the Group expects this to remain for FY2021," Kossan said in a filing with Bursa Malaysia.
"Post-pandemic, the demand for gloves will continue to undergo secular growth as a result of increased healthcare standards and hygiene awareness in the medical and non-medical sectors. With our new incoming capacity and efficiency improvements, the Group expects the Gloves division to deliver an even stronger performance in FY2021," it said.
In January, the Malaysian Rubber Glove Manufacturers Association (MARGMA) estimated that Malaysia’s glove export revenue to hit RM29.8bil in 2020 compared with RM17.4bil in 2019.
Global demand was estimated at 360 billion gloves in 2020 compared with 270 billion in 2019.
MARGMA projected an annual demand growth of 15% and 20% in 2021 with Malaysia’s projected glove export revenue to reach RM34bil and global glove demand at 420 billion pieces.
Did you find this article insightful?
100% readers found this article insightful