KUALA LUMPUR: Kossan Rubber Industries Bhd made a net profit of RM1bil in the first three months of this year, driven by "the unprecedented demand" for the group’s glove products.
"The Group expects the gloves division to continue to perform significantly better in 2021 as compared with 2020," Kossan said in announcing its best-ever quarterly results on Tuesday.
Earnings per share in the first quarter was 40.76 sen, while revenue swelled to RM2.19bil compared with RM611mil.
The company has declared a first interim payout of 12 sen a share.
Kossan said the surge in sales and profits was driven by higher average selling prices for its glove products.
The company, in a filing today, hinted that glove prices may have near their peaks as the momentum of the vaccine rollout worldwide continue to increase.
"Post-pandemic, the demand for gloves will continue to undergo structural growth as a result of increased healthcare standards and hygiene awareness in both the medical and non-medical sectors," it said.
"As such, even though average selling prices are projected to moderate as the demand-supply imbalance eases, demand will remain above pre-pandemic levels," it added.