KUALA LUMPUR: Hartalega Holdings Bhd
's net profit rose 79.3% to RM32.8mil in the second quarter ended Sept 30, 2026 (2QFY27), from RM18.3mil a year earlier, driven by higher average selling prices (ASPs) and improved operating efficiency.
Quarterly revenue increased 19.5% to RM644.7mil from RM539.7mil previously, supported by higher ASPs while sales volume remained broadly stable.
The glove manufacturer said higher selling prices helped offset increased raw material costs, particularly nitrile prices, which rose significantly amid the Middle East conflict.
Operating profit nearly tripled to RM40.4mil from RM13.7mil, reflecting tighter cost controls and improved production efficiency.
“This improvement reflects pricing discipline and the group's ongoing cost optimisation initiatives, including tighter cost control and improved production efficiency, which helped offset higher unit production costs,” it said in the notes accompanying its financial results.
For the first six months of FY27, Hartalega's net profit more than tripled to RM102.8mil from RM30.9mil, while revenue rose 14.4% to RM1.25bil from RM1.09bil.
“This growth was primarily driven by higher US dollar-denominated ASPs amid elevated raw material costs arising from the Middle East conflict.
“The increase was partially offset by the adverse impact of foreign exchange movements — namely the strengthening of the ringgit against the US dollar, which reduced ringgit-translated sales — as well as marginally lower sales volume during the period,” Hartalega said.
On its prospects, Hartalega said higher US tariffs on China-origin gloves had improved the competitiveness of Malaysian manufacturers, positioning the group to capture additional sales in the US market.
However, it cautioned that global manufacturing capacity continued to exceed demand, limiting pricing power amid intense competition.
The group said redirected Chinese glove supply was also intensifying competition in non-US markets, while the expansion of Chinese-owned manufacturing facilities in South-East Asia could increase competitive pressure in the US.
“In the near-term, profitability will continue to depend on the relationship between ASP and input costs. Renewed escalation in the Middle East could place upward pressure on raw-material, energy and freight costs,” Hartalega said.
On operations, the group said Plant 9 was fully operational, while five production lines at Plant 3 had been recommissioned using technologies and operating practices developed at Plant 9.
It added that headcount per million gloves produced at its NGC 1.5 facility declined 27.3% in FY26, reflecting productivity improvements.
Hartalega plans to continue recommissioning Plant 3 before moving to Plant 4, with capital expenditure focused on automation, production upgrades and selected artificial intelligence applications.
