Comfort Gloves posts strong Q2 earnings


Comfort Gloves said in a filing with Bursa Malaysia that the improved earnings were mainly due to higher sales revenue and better economies of scale that had lifted the margin from 22% to 30%, partially offset by the increase in latex price.

KUALA LUMPUR: Comfort Gloves Bhd posted a strong set of financial results in the second quarter ended July 31, with net profit up 248% to RM148.82mil from RM42.79mil a year ago.

It said in a filing with Bursa Malaysia that the improved earnings were mainly due to higher sales revenue and better economies of scale that had lifted the margin from 22% to 30%, partially offset by the increase in latex price.

For the quarter in review, Comfort Glove’s revenue grew 154.7% to RM504mil from RM198mil a year ago.

It declared an interim dividend of two sen a share.

The higher sales revenue was mainly due to the increase in average selling price (ASP) and higher sales volume.

In the first half, net profit jumped to RM368mil compared with RM598mil in the previous corresponding period. Its revenue jumped to RM1bil from RM351mil.

On the prospects, it said in addition to the completely commissioned four double former dipping lines in the last quarter, the commissioning of an additional seven double former dipping lines are still in progress. They are expected to be completed towards the end of financial year ending Jan 31, 2022.

“With the fully completed production facility, the group expects to achieve better economies of scale that will improve the overall profit margin.

“The group expects that the global demand for gloves will continue to rise in long term since the outbreak of Covid-19 pandemic.

With the increase in hygiene awareness in various sectors and personal care, the continuous usage and demand for gloves as a protective barrier will go up in the immediate term, it said.

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