PETALING JAYA: Glovemaker Hartalega Holdings Bhd’s net profit skyrocketed to RM1.12bil for the fourth quarter ended March 31,2021, from RM114.42mil a year earlier, thanks to higher sales and lower operation costs.
In a filing with Bursa Malaysia, Hartalega said it posted a significant increase in revenue for the fourth quarter to RM2.3bil from RM778.24mil a year ago. It attributed the growth to the increase in average selling prices as well as sales volume for the quarter.
Quarter-on-quarter, Hartalega posted an 11.73% jump in net profit to RM1.12bil from RM1bil in the third quarter, on the back of an 8% surge in revenue to RM2.3bil from RM2.12bil previously.
Hartalega chief executive officer Kuan Mun Leong said he expected demand for gloves to remain high especially with the resurgence of Covid-19 cases as well as changes in the usage of gloves post pandemic.
“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 South-East 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, ” he said in a statement yesterday.
On the back of the increasing demand, Kuan said Hartalega would continue to focus on its expansion plan that would see the group have an 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, ” he said.
In addition, the group had recently entered into a sales and purchase agreement to acquire 250 acres of land in Bukit Kayu Hitam, Kedah, to support its expansion.
Hartalega said the acquisition marks its latest phase of growth with an investment of RM7bil to build 16 new manufacturing facilities over the next 20 years.
“Coupled with the earlier investment in Sepang (60 acres) and Banting (95 acres), these acquisitions will enable the group to realise its growth plans towards 95 billion pieces by 2027, ” Hartalega said in a filing with Bursa Malaysia.
For the financial year ended March 31,2021 (FY21), Hartalega posted a surge in net profit to RM2.89bil from RM433.62mil a year earlier on a year-on-year basis.
Revenue for the year more than doubled to RM6.7bil from RM2.9bil previously.
Earnings per share (EPS) for the fourth quarter grew to 32.75 sen while for the full financial year, EPS improved to 84.43 sen. Net assets per share stood at RM1.45 as of March 31,2021.
Hartalega has declared a third interim single-tier dividend of 17.70 sen per share forFY21, with the entitlement date on May 24 and payable on June 9.
This will bring total dividends to date for the financial year to 31.20 sen per share.
Shares in Hartalega closed 5 sen lower to RM9.93 apiece at the close yesterday.