PETALING JAYA: Hartalega Holdings Bhd
’s net profit jumped by over 38% in the financial year ended March 31, 2026 (FY26), even as it was hit by cheaper glove prices and a stronger ringgit.
The improved bottom line, however, came with caution from the glove maker: market conditions are expected to remain volatile in the near term amid heightened geopolitical tensions.
In a filing with Bursa Malaysia yesterday, the group said elevated crude oil prices, driven by concerns over supply disruptions, are expected to exert upward pressure on key input costs, including nitrile butadiene latex and logistics, thereby impacting industry-wide cost structures.
Hartalega announced a net profit of RM103.02mil, up from RM74.54mil in FY25.
Revenue, however, fell by 17.4% year-on-year (y-o-y) in FY26 to RM2.14bil.
The decline was mainly due to lower average selling prices and adverse foreign- exchange (forex) effects, as the strengthening of the ringgit against the US dollar reduced translated revenue.
Nevertheless, Hartalega’s bottom line managed to grow stronger, on the back of higher plant utilisation, automation-driven efficiency gains and continuous cost optimisation initiatives.
For the fourth quarter of FY26, the glove maker posted a net profit of RM40.47mil, nearly tripling from RM14.48mil in the year-ago quarter.
Quarterly revenue was lower by 1.6% y-o-y at RM515.42mil due to the stronger ringgit against the US dollar, which led to a lower ASP.
Moreover, earnings per share for the quarter rose to 1.19 sen from 0.42 sen in the fourth quarter of last year.
Underpinned by the group’s strong performance, the board of directors declared a first interim dividend of 1.8 sen per share with an entitlement date on May 20, 2026, and payable on June 16, 2026.
Hartalega chief executive officer Kuan Mun Leong said the group is proactively managing external risks to minimise potential disruption.
“This includes working closely with our suppliers to ensure supply continuity and calibrating our hedging strategies in response to forex movements.
“As part of our risk mitigation measures, we also have in place diversified sourcing, flexible logistics arrangements and prudent inventory buffers.
“At the same time, we continue to engage with customers to ensure transparency on supply conditions.”
He added the group continues to invest in operational efficiency, automation and technological upgrades.
Alongside its commitment to environmental, social and governance practices, he said the group is well-positioned to navigate uncertainties while strengthening its competitiveness and delivering sustainable growth over the long run.
