The higher net profit in 2Q26 was achieved despite a lower revenue, which had declined by 17% y-o-y to RM539.7mil.
PETALING JAYA: Hartalega Holdings Bhd
continues to caution against a challenging outlook for near-term demand, influenced by uncertainties surrounding US tariff policies, intensifying competition from China’s glove producers in non-US markets and escalating operating costs.
For the second quarter ended Sept 30, 2025 (2Q26), the glovemaker’s net profit jumped 112% year-on-year (y-o-y) to RM18.3mil (or earnings per share of 0.54 sen) from RM8.6mil.
The improvement was mainly driven by cost optimisation initiatives to drive unit cost down and improve operational efficiency.
Moreover, lower material cost, cost savings achieved by the group, as well as improved hedging efficiency that mitigated the impact of foreign exchange losses, also supported Hartalega’s earnings performance.
The higher net profit in 2Q26 was achieved despite a lower revenue, which had declined by 17% y-o-y to RM539.7mil.
The decline was primarily attributable to a 13% reduction in sales volume during the quarter, mainly due to competitive pricing pressure in non-US markets.
In addition, the average selling price in ringgit declined by 5%, primarily arising from the strengthening of the ringgit against the US dollar.
For the six month period ended Sept 30, 2025 (6M26), the group’s net profit declined by 24% y-o-y to RM30.9mil.
Revenue for 6M26 was also down by 12% y-o-y to RM1.1bil due to lower sales volume and the adverse impact of foreign exchange movements, as the strengthening of the ringgit against the US dollar led to a decrease in ringgit-translated sales.
This was partially offset by a marginal increase in US dollar-denominated pricing during the period.
In a filing with Bursa Malaysia, Hartalega said it remains well positioned to weather the aforementioned pressures.
The company added its resilience is underpinned by strategic automation investments, disciplined cost optimisation measures and a steadfast commitment to its long-term sustainability objectives.
The group said it maintains a positive outlook on the long-term prospects of the glove industry, supported by sustained global demand that has surpassed pre-pandemic levels.
To this end, Hartalega said the depletion of the Covid-19 pandemic era stockpiles has led to renewed restocking activities, signalling a steady recovery in market demand.
Additionally, it noted while competition within the sector continues to intensify, glove demand remains resilient and stable.
Notwithstanding the favourable long-term outlook, the group said near-term demand continues to be influenced by uncertainties surrounding US tariff policies.
Although China’s glove exports to the United States have declined significantly, its shipments to other markets have expanded, reflecting a strategic supply redirection.
This development reflects the intensifying competition from China’s glove producers in non-US markets, challenging Malaysia’s efforts to preserve its market leadership globally.
