Top Glove 3Q net profit surges to RM2.03b

Top Glove said the quarter-on-quarter performance was softer as selling prices peaked in February.

KUALA LUMPUR: Top Glove Corporation Bhd’s net profit for the third quarter ended May 31 surged to RM2.03bil from a year ago but the quarter-on-quarter performance was softer as selling prices peaked in February.

The world’s largest glove maker’s net profit surged by 485% from RM347.89mil. Its revenue jumped by 147% to RM4.16bil from RM1.69bil. Earnings per share were 25.44 sen compared with 4.39 sen.

On a nine months basis, the group’s performance was robust, with sales revenue of RM14.29bil, up 246% compared with RM4.12bil in the previous corresponding period, it said in a statement on Wednesday.

Top Glove’s net profit in the nine-month period surged by 1, 163% to RM7.26bil from RM575mil in the previous corresponding period.

“Group’s net cash position as at May 31, 2021, remained strong at RM4.23billion, ” it said.

However, the sales revenue of RM4.16bil and profit after tax of RM2.60bil in the third quarter ended May 31, 2021 were softer quarter on quarter, easing 22% and 29% respectively, it explained.

“The group’s softer quarter on quarter performance for 3QFY2021 came on the back of adjustments in line with glove market pricing trends, to average selling prices (ASPs) which had peaked in February 2021.

“The sales volume (quantity sold) eased 4% quarter on quarter mainly due to reduction in sales to the US, following a temporary halt in shipments to the US from Malaysia, in compliance with requirements of the US Customs and Border Protection (CBP).

“Nonetheless, global glove demand remains resilient as glove usage continues to rise, driven by the ongoing pandemic, ” it said.

Top Glove’s total dividend payout for 3QFY2021 is 71%, which comprises a special dividend payout of 21% plus 50% as per the company’s dividend policy. This amounts to 18 sen per share.

The ex-date for the dividend is June 23 and the payment date is July 7.

Top Glove said the total dividend declared for 9MY2021 of 59.7 sen per share, represents a 406% increase from the full year dividend for FY2020 of 11.8 sen per share.

It said raw material prices rose for 3QFY2021, with average natural latex concentrate prices up by 8% to RM6.31 a kg, whilst nitrile latex prices increased marginally by 0.4% to US$2.31 a kg quarter on quarter.

“Going forward, raw material prices are expected to be on a downtrend, which will benefit the group, ” it said.

Top Glove managing director Datuk Lee Kim Meow said the group has done well despite a tough environment, weathering several difficulties to deliver a commendable performance.

“This is attributed to technological advancements towards Industry 4.0, as well as R&D and innovation, and most importantly, good people.

“The softer quarter on quarter results for 3QFY2021 was due to the declining ASPs in line with glove market pricing trends, as well as the impact of glove sales from Malaysia to the US, which we are working closely with the US CBP to speedily resolve, ” Lee said.

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