Hartalega’s 4Q net profit surges to RM1.12b, dividend 17.7c a share

Hartalega chief executive officer Kuan Mun Leong (pic) said global demand for medical supplies including nitrile gloves is expected to remain elevated due to new waves of Covid-19 cases.

KUALA LUMPUR: Glove manufacturer Hartalega Holdings Bhd’s net profit surged to RM1.12bil in the fourth quarter ended March 31,2021 and jumped to RM2.88bil for the financial year as demand increased tremendously due to the impact of the global Covid-19 pandemic.

Announcing the super-normal profits on Tuesday, Hartalega, which is the largest producer of nitrile gloves in the world, said profit before tax (PBT) for 4Q rose to RM1.51bil on the back of a revenue of RM2.29bil.

When compared with a year ago, the net profit for 4Q FY21 jumped by 878% from RM114.41mil a year ago and PBT surged by 1,000% from RM136.75mil. Its revenue increased by 195.5% from RM778.24mil. Earnings per share were 32.75 sen compared with 3.40 sen.

For FY21, its net profit jumped by 565.4% to RM2.88bil from RM433.62mil in FY20. Its PBT increased to RM3.81bil from RM555.43mil in FY20 and revenue saw a strong increase to RM6.69bil from RM2.92bil.

“The group’s strong performance for the year was primarily due to significantly higher sales revenue, driven by higher average selling prices and increased sales volume, although this was partially affected in the fourth quarter due to the temporary disruption in the global container supply chain, ” it said.

As a result of the group’s strong performance, the board declared a third interim single tier dividend of 17.70 sen per share for its FY21, with the entitlement date on May 24 and payable on June 9. This will bring total dividends to date for FY21 to 31.20 sen per share.

Its CEO Kuan Mun Leong said, “While vaccination programmes have commenced, countries across the world have unfortunately seen new waves of Covid-19 cases, particularly in India, South America, the Middle East and Southeast Asia.

“As such, global demand for medical supplies including nitrile gloves is expected to remain elevated. Heightened demand growth will further be driven by the structural step-up in demand, on the back of increased glove usage from emerging markets with low glove consumption per capita and increased hygiene awareness, establishing a new baseline for the industry.”

Kuan also said against this backdrop, Hartalega was committed to fulfilling its critical role in the healthcare value chain by continuing to deliver its high-quality gloves to safeguard frontliners across the globe.

To further support Malaysia’s fight against the pandemic, it contributed RM90mil to the Government’s Covid-19 Fund in February 2021.

“Moving forward, we are focused on our expansion plans. Plants 1 to 6 of our Next Generation Integrated Glove Manufacturing Complex (NGC) are fully completed and we have commissioned six out of 10 lines for Plant 7, which will have an annual installed capacity of 2.7 billion pieces of gloves once fully completed, ” he said.

He said construction of its next expansion phase of the NGC 1.5 was also underway, which will see the addition of four production plants contributing 19 billion pieces of gloves to its annual installed capacity.

This will see the group’s annual installed capacity increase to 63 billion pieces over the next two to three years.

“With these expansion plans firmly on track, we remain well-positioned to cater to global demand growth for our high-quality nitrile gloves, ” Kuan said.

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