Hartalega posts record quarterly net profit of RM2.26bil

KUALA LUMPUR: Hartalega Holdings Bhd's net profit for the first quarter of its financial year ended June 30, 2021, was a record-high RM2.26bil, a nine-fold increase over RM219.72mil in the previous corresponding quarter.

Revenue for the current quarter was RM3.9bil, a 324.2% increase from RM920.09mil in the comparative quarter.

Compared with the immediate preceding quarter, revenue was 69.1% improved due to higher sales volume as well as an increase in average selling price (ASP)

Pre-tax profit was 90.5% higher at RM1.37bil due to the higher sales revenue after offsetting higher raw material price.

Earnings per share for the quarter rose to 66.08 sen while net assets per share stood at RM1.91 as at June 30, 2021.

According to Hartalega CEO Kuan Mun Leong, the average selling prices of gloves have been declining from thier peak moving into the second half of the year.

However, global demand remains heightened as new waves of cases with Covid-19 variants are affecting countries worldwide.

"For the longer-term, the structural step-up in demand in the glove sector will further spur demand growth, driven by increased glove usage from emerging markets with low glove consumption per capita and increased hygiene awareness,” he said.

In keeping up with demand, the group is progressing with its expansion plans via its Next Generation Integrated Glove Manufacturing Complex (NGC) and NGC 1.5.

To date, eight out of 10 lines of Plant 7 of the NGC have been commissioned.

Once fully completed, Plant 7 will have an annual installed capacity of 2.7 billion pieces.

In addition, the construction of NGC 1.5 is currently underway, with the first production line targeted to be commissioned by December 2021.

NGC 1.5 will comprise four manufacturing facilities contributing 19 billion pieces of gloves to annual installed capacity, bringing the group’s annual installed capacity to an expected 63 billion pieces over the next two to three years.

On its Covid vaccination efforts, Hartalega reported it has commenced an immunisation programme for employees to be vaccinated through the Public-Private Partnership Covid-19 Industry Immunisation Programme (Pikas).

Over 90% of Hartalega employees including migrant workers have completed the first dose of vaccination, with the second dose targeted for completion by end-August 2021.

“Building on our strong foundation and progressing in our strategic plans, the group is well-positioned to continue delivering high-quality nitrile gloves to protect frontliners across the world, and cater for future demand in the years ahead,” said Kuan.
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