PETALING JAYA: While gloves continue to be an essential consumable in healthcare as well as a growing range of industrial and specialised applications, Kossan Rubber Industries Bhd
says there is a global oversupply situation.
Intensified competition from Chinese manufacturers, who are redirecting exports to non-US markets, is also placing continued pressure on prices and margins, according to the group.
It planned to advance its transformation programme, focusing on automation, digital solutions and cost optimisation.
Releasing its results for the fourth quarter financial year ended Dec 31, 2025 (4Q25) yesterday, Kossan Rubber saw its net profit jumping 68.5% year-on-year (y-o-y) to RM46.7mil, despite revenue shrinking 15.1% to RM439.5mil.
The group said the lower top line was mainly due to the strengthening of the ringgit against the US dollar and deferment of shipments to January 2026 amounting to RM35.6mil due to port congestion.
The improved net profit, however, was primarily attributed to lower production cost arising from improved production efficiencies.
FY25 saw Kossan Rubber posting a 27.9% y-o-y jump in bottom line to RM151.3mil, even as revenue decreased by 8.8% to RM1.75bil.
Improved efficiencies that contributed to lower production costs had been reported as the main reasons for the higher profitability.
Compared with the 3Q25, top line had remained flattish from the RM439mil recorded in 3Q25, while net profit improved 23.4% from RM37.8mil.
Kossan Rubber attributed the performance to lower production costs due to operating efficiency.
With no dividends proposed for 4Q25, the total dividends for FY25 remained at two sen per share compared with the eight sen per share declared in FY24.
“The recent strengthening of the ringgit against the US dollar may have had a short-term impact on revenue but the group’s established foreign exchange hedging mechanisms and prudent financial management help mitigate this effect,” said it said in a filing with Bursa Malaysia yesterday.
At the same time, it said its technical rubber products (TRP) division is expected to operate in a challenging environment in 2026 amid continued market uncertainties and cost pressures.
Kossan Rubber said it would closely monitor market conditions and industry developments while leveraging the TRP division’s operational flexibility to maintain stable operations, enhance efficiency, and ensure the effective execution of ongoing projects.
