Kossan records 4Q net profit of RM218.7mil

KUALA LUMPUR: Kossan Rubber Industries Bhd saw its profit more than halve to RM218.67mil in the fourth quarter ended Dec 31, 2021 (4Q21) from RM543.42mil in the same quarter a year ago.

For 4Q21, the glovemaker’s revenue decreased by 29.26% to RM924.56mil as compared with RM1.31bil in 4Q20 due to lower revenue from all three divisions.

Kossan has declared a fourth interim dividend of 12 sen per share for the financial year ended Dec 31, 2021 (FY21). The entitlement data is on April 6, 2022 and payable on April 22, 2022.

For the full financial year, Kossan's net profit jumped 162.6% to RM2.85bil against RM1.08bil a year ago mainly due to the higher average selling price (ASP) in the gloves division.

It recorded revenue of RM6.66bil, an increase of 82.97% as compared with RM3.64bil in FY20 due to higher revenue from all three divisions.

Commenting on its prospects, Kossan said the glove industry remained challenging with the supply and demand imbalance persisting.

“The group expects the continued tapering of glove demand and ASP from the heights of the pandemic as a result of the rollout of mass vaccinations globally,” it said, adding that glove sector is seeing increased competition and incoming capacity from domestic as well as foreign manufacturers.

“As we move forward, the group will continue with its transformation where structural changes have been implemented throughout the organisation, with a focus on operating efficiency which will allow the group to be resilient even in the face of rising costs and heightened competition,” Kossan said,

The group has accelerated reinvestments into digitalisation and automation of its plants to increase productivity and to prepare the group for its next phase of growth.

“Post-pandemic, the glove industry will continue to experience stable growth underpinned by higher healthcare standards and hygiene awareness in both the medical and non-medical sectors,” it said.