KUALA LUMPUR: Top Glove Corp Bhd
registered encouraging sales in the second quarter of its financial year (2QFY26) although the glove maker's bottomline was only slightly higher owing to the effects of a weaker US dollar.
According to the group, sales orders across most regions were stronger during the quarter - led by Europe, which experienced a recovery in market share.
Quarterly revenue jumped to RM1.01bil from RM883.65mil in the year-ago quarter.
"Higher utilisation of 89% further supported cost efficiency and productivity gains, enhancing competitiveness even as average selling prices softened in line with declining raw material prices," Top Glove said in a statement.
Net profit, however, was only slightly higher at RM30.76mil as compared to RM30.28mil in the previous comparative quarter.
Despite its prudent hedging programme, the group said it was unable to fully mitigate the impact of the unexpected sharp slide of the greenback from mid-2QFY26.
"Nevertheless, continued improvements in cost management and quality efficiency, together with higher utilisation rates, helped offset a significant portion of the adverse currency effects," it added.
Over the first half of the financial year, Top Glove's net profit stood at RM69.34mil, nearly double the net profit of RM35.76mil recorded in the first half of the previous year. Revenue during the six-month period was also higher at RM1.89bil as compared to RM1.77bil in the comparative period.
The volume growth recorded during the current quarter was encouraging, said managing director Lim Cheong Guan, noting the continued growth in glove demand and the effectiveness of the group's operational discipline.
"While forex pressures tempered our performance, the diligent efforts of our people in delivering quality, cost efficiency and service excellence helped to offset the impact considerably.
"The global environment remains fluid, including ongoing geopolitical developments, and we will continue to manage these external factors prudently and maintain stable operations."
