Hartalega Q1 net rises 72pc to RM96m
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.