PETALING JAYA: An increasingly balanced supply and demand dynamic for gloves is contributing to a healthier market environment, says Top Glove Corp Bhd
executive chairman Tan Sri Lim Wee Chai.
This healthier market environment would lead to a more sustainable earnings cycle for glovemakers in the coming months.
Lim said demand has grown about 10%, which he considers normal and sustainable, in contrast to the demand surge of 40% to 50% during the Covid-19 pandemic.
“But after the pandemic, profit margins dropped about 3%, and at times it even went into the negatives. So the sustainability factor is there and the market is stable.
“In the next five to 10 years, we still have some bandwidth to grow,” he said during the company’s fourth quarter ended Aug 31, 2026 and financial year-end briefing.
According to Lim, supply remains slightly ahead of demand, however the gap is no longer as wide as it was two to three years ago.
“With manufacturers operating below full capacity and fewer new plants coming onstream, the industry has become more disciplined,” he opined.
This helped manufacturers like Top Glove raise selling prices when raw material and energy costs rose.
“The oil price increase affects the raw materials which affects growth prices. So in short, the average selling prices are trending up this month. In September this year when we announced the increase in prices, there was no panic buying. People have probably gotten used to it,” he reckoned.
As for the expected 30% increase in natural gas prices this month, Lim said the company will pursue cost-saving initiatives like heat energy efficiency and automation.
“It will roughly affect our costs per gallon between 2% and 3%. While the costs will depend on the product, we’re looking at an increase of about US$0.50 to US$0.70 per thousand pieces of gloves.
“For the month of October and November, we’ve adjusted the prices to be up to US$4 which will cover the increases of all the rest,” he said.
However, Lim cautioned that market conditions can change and for the company to sustain profitability, there needs to be a disciplined approach and operational excellence.
“We will closely monitor raw material prices, customer demand and geopolitical development to ensure that we respond in a timely manner.”
Lim added for the next financial year, the group’s priorities were clear.
“We aim to capture sustainbale market opportunities, stregthen operational competitiveness, protect margins and continue improving cash generation,” he noted.
Lim also said for the next financial year, he expects the group to do even better than they did during this term.
“Profit is sustainable, and we expect a growth of 10% if we follow the market. If we work even harder, we will do better than the 10% market growth rate.”
Meanwhile, for financial year 2026, Top Glove posted a net profit of RM307.96mil, surging higher from a net profit of RM105.33mil in the previous year, while revenue rose to RM4.23bil from RM3.49bil.
For the fourth quarter, the company registered a profit of RM157.63mil while revenue hit RM1.25bil.
The board of directors declared a final dividend of 1.5 sen per share, payable on Dec 15, 2026.
