KUALA LUMPUR: Iconic Worldwide Bhd expects the demand for its Iconic Medicare products to accelerate as economies re-open and day-to-day activities increase.
“With the expansion of our glove product range, along with our pipeline of new personal protective equipment (PPE) products, the group will leverage our established brand presence and manufacturing capabilities to capture this market opportunity,” chairman Datuk Seri Tan Kean Tet said in a statement.
He said the group continued to bet on long-term glove demand, which had historically risen in tandem with increased public awareness of personal hygiene and the dangers of infectious diseases, particularly in emerging markets.
Currently, Iconic Medicare products include a range of nitrile and latex gloves and disposable face masks.
“We believe face masks will continue to be a key source of revenue for the group, as the Iconic Medicare brand is already established with a recognisable presence in the market.
“Demand for face masks has been sustained in the post-Covid era. Consumers are now well aware of the importance of wearing face masks. It has become the ‘new normal’ for people to wear face masks in public areas,” Tan said.
Iconic noted that the glove manufacturing industry had entered a phase of consolidation.
In coming quarters, the group expect this to lead to an easing of market oversupply. In fact, glove average selling prices (ASPs), which had been declining up until early 2023, appear to be stabilising.
At this rate, ASPs are trending towards pre-pandemic levels, which implies glove demand is on a recovery path, it said.
“Iconic has made significant investments in automation technology for our glove dipping lines. This will boost the sustainability of our glove production activities, while lowering manufacturing costs. This will drive Iconic Worldwide’s competitive edge as the market recovers,” Tan said.
Iconic’s net loss widened to RM28.3mil in the fourth quarter ended March 31 (4Q) from RM2.2mil a year ago.
Revenue for the quarter fell to RM15.3mil from RM48.7mil previously.
For the full financial year, Iconic posted a net loss of RM24.3mil on revenue of RM86.8mil.