Har­talega Q1 net rises 72pc to RM96m

New Straits Times - - Business - Ay­isy Yu­sof

KUALA LUMPUR: Har­talega Hold­ings Bhd’s net profit in the first quar­ter (Q1) ended June 30 jumped 71.57 per cent to RM96.39 mil­lion, from RM56.18 mil­lion in the same pe­riod a year ago.

This was due to in­crease in sales vol­ume and av­er­age sell­ing price, strength­en­ing of the US dol­lar and im­prove­ment in op­er­a­tional ef­fi­ciency.

In a fil­ing to Bursa Malaysia yes­ter­day, the glove man­u­fac­turer said rev­enue rose 49.58 per cent to RM601.04 mil­lion from RM401.83 mil­lion a year ago on the back of the com­pany’s con­tin­u­ous ex­pan­sion in pro­duc­tion ca­pac­ity and in­crease in de­mand.

Har­talega manag­ing di­rec­tor Kuan Mun Leong said the strat­egy that the com­pany put in place sev­eral years ago had driven the or­ganic growth.

“Har­talega had the fore­sight to in­vest in ca­pac­ity ex­pan­sion as well as our Next-Gen­er­a­tion In­te­grated Glove Man­u­fac­tur­ing Com­plex (NGC).

“We ex­pect to see our mo­men­tum strengthen. To com­ple­ment this, height­ened pro­duc­tiv­ity cou­pled with in­creas­ing de­mand drove our rev­enue growth.

“Higher sales vol­ume and in­creased op­er­a­tional ef­fi­ciency also contributed to our im­proved bot­tom line results for the quar­ter,” he said in a state­ment yes­ter­day.

Kuan said global glove con­sump­tion con­tin­ued to grow while Malaysia’s lead­er­ship po­si­tion in the in­dus­try had been en­hanced by the re­cent China sup­ply in­ter­rup­tions, where Chi­nese rub­ber and vinyl glove­mak­ers were im­pacted by stricter en­vi­ron­men­tal reg­u­la­tions from Bei­jing.

“The main ben­e­fi­cia­ries are Malaysian glove pro­duc­ers, as de­mand for ni­trile gloves from Malaysia has sig­nif­i­cantly in­creased.

“Given the cur­rent mar­ket de­mand, most Malaysian glove man­u­fac­tur­ers have high util­i­sa­tion rates,” he said.

Har­talega says the com­pany’s rev­enue rose by 49.58 per cent to RM601.04 mil­lion from RM401.83 mil­lion a year ago.

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