Hartalega Q3 earnings jump 70pc to RM113m

KUALA LUMPUR: Hartalega Holdings Bhd’s net profit in the third quarter ended December jumped 70.4 per cent to RM113.1 million from RM66.4 million previously on higher sales volume and average selling prices.

Pre-tax profit rose 77.3 per cent to RM138.9 million from RM78.3 million in the same quarter a year ago while revenue rose 32.2 per cent to RM603.1 million.

For the nine-month period, the group posted a higher net profit of RM323.3 million, which is a 66.7 per cent rise compared with RM193.9 million in the previous corresponding period. Revenue grew by 38.1 per cent to RM1.78 billion.

The group also revised its dividend policy whereby from financial year 2018, Hartalega will distribute a minimum of 60 per cent of its annual net profit to shareholders, a 45 per cent increase from its current policy.

For its financial year ending March 2018, the board declared a second interim dividend of four sen per share single tier with the entitlement date on March 9 and payable on March 28.

Managing director Kuan Mun Leong said prospects remained bright with nitrile gloves constituting 61 per cent of Malaysian rubber glove exports.

“Robust demand is expected to continue, particularly as Chinese vinyl glove producers are facing challenges in light of stricter environmental laws under China’s anti-pollution drive.”

Kuan said its Next Generation Integrated Glove Manufacturing Complex was well on schedule to meet growing demand.

It aims to launch the world’s first non-leaching anti-microbial nitrile examination gloves by the second quarter.