Har­talega Q4 profit rises to RM89.4m on higher de­mand

New Straits Times - - Business -

KUALA LUMPUR: Har­talega Hold­ings Bhd’s net profit in­creased 45.3 per cent to RM89.43 mil­lion from RM61.55 mil­lion in the fourth-quar­ter ended March 31.

In a fil­ing to Bursa Malaysia yes­ter­day, the rub­ber glove man­u­fac­turer said the pos­i­tive re­sults was due to in­creased sales rev­enue, im­prove­ments in op­er­a­tional efficiency and re­duc­tion in op­er­a­tion over­heads.

Rev­enue in the same quar­ter in­creased 31.6 per cent to RM526.99 mil­lion from RM400.45 mil­lion, in line with the group’s con­tin­u­ous ex­pan­sion in pro­duc­tion ca­pac­ity and an in­crease in de­mand.

The com­pany said the in­crease in sales vol­ume and the strength­en­ing of the dol­lar also con­trib­uted to the in­crease in com­pany rev­enue.

For the last 12 months, Har­talega’s net profit in­creased 9.9 per cent to RM283.04 mil­lion from RM257.43 mil­lion, while rev­enue in the same pe­riod in­creased 21.6 per cent to RM1.82 bil­lion from RM1.49 bil­lion.

Har­talega said de­mand for rub­ber gloves started the year on a high note due to the con­tin­ued switch­ing mo­men­tum and in­creas­ing healthcare re­quire­ments.

“Har­talega has po­si­tioned it­self strate­gi­cally to lever­age on this grow­ing de­mand with its in­vest­ment in its Next Gen­er­a­tion In­te­grated Glove Man­u­fac­tur­ing Com­plex (NGC),” it said in a state­ment.

Har­talega said Phase 1 of the NGC, com­pleted early last year, con­trib­uted pos­i­tively to group earn­ings.

The pro­gres­sive com­mis­sion­ing of Phase 2 in Oc­to­ber is ex­pected to con­trib­ute fur­ther to group earn­ings.

Amid the volatil­ity of raw ma­te­rial prices in the early part of the year and a more com­pet­i­tive en­vi­ron­ment, Har­talega con­tin­ued to forge forward by com­mit­ting to qual­ity to meet cus­tomer re­quire­ments, main­tain­ing high util­i­sa­tion rates and or­gan­i­sa­tion-wide ef­forts to im­prove efficiency, it added.

“Har­talega is dou­bling down on its ef­forts to main­tain its growth mo­men­tum,” it said.

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