Har­talega earn­ings up on higher sales

Net profit up 6% to RM120.2mil in Q2 on im­proved sales

The Star Malaysia - StarBiz - - Front Page -

PE­TAL­ING JAYA: Har­talega Hold­ings Bhd posted a 6% in­crease in net profit to RM120.2mil for the sec­ond quar­ter ended Sept 30 com­pared with the same quar­ter last year.

This brings its net profit for first-half fi­nan­cial year 2019 (FY19) to RM245.09mil com­pared with a net profit of RM209.73mil in the first half of FY18.

The glove maker has also de­clared a first in­terim div­i­dend of 2.2 sen per share sin­gle-tier in re­spect of FY19, payable on Dec 28. The en­ti­tle­ment date for this is Dec 7.

In a fil­ing with Bursa Malaysia, the group said its sec­ond-quar­ter net profit grew in tan­dem with higher sales vol­ume achieved, which was con­trib­uted by grow­ing de­mand from cus­tomers and im­proved av­er­age sell­ing price from the in­crease in ni­trile cost.

Sales vol­ume dur­ing the sec­ond quar­ter was up 10.6%.

Har­talega added that the first ship­ment of an­timi­cro­bial gloves (AMG) had been de­liv­ered to a ma­jor Ger­man med­i­cal sup­ply com­pany in Septem­ber, fol­low­ing the launch in the UK last quar­ter.

It said the group had also re­ceived or­ders from cus­tomers in about 10 coun­tries.

“Har­talega is work­ing on se­cur­ing Fed­eral Drug Ad­min­is­tra­tion ap­proval for US mar­ket where there is greater aware­ness among health­care pro­fes­sion­als on the dan­ger of health­care-as­so­ci­ated in­fec­tions.

“Sales of the AMG is ex­pected to gain mo­men­tum as it will be priced com­pet­i­tively to en­sure quick mar­ket ac­cep­tance,” it said.

Not­with­stand­ing po­ten­tial chal­lenges aris­ing from the ris­ing cost and height­en­ing com­pe­ti­tion, Har­talega re­mains op­ti­mistic on its prospects, mov­ing for­ward.

This will be un­der­pinned by the on­go­ing ex­pan­sion of its Next-Gen­er­a­tion In­te­grated Glove Man­u­fac­tur­ing Com­plex (NGC) and the po­ten­tial growth of the AMG mar­ket share.

In meet­ing the ris­ing global de­mand for rub­ber gloves, Har­talega has be­gun com­mis- sion­ing Plant 5 in Au­gust, to be fol­lowed by the con­struc­tion of Plant 6.

Plant 5 and Plant 6 will each have an­nual in­stalled ca­pac­ity of 4.7 bil­lion pieces.

A new plant – Plant 7 – is also in the ex­pan­sion pipe­line, tai­lor­ing to small or­ders fo­cus­ing on spe­cialty prod­ucts. Plant 7 will have an an­nual in­stalled ca­pac­ity of 2.6 bil­lion pieces.

The in­creas­ing con­tri­bu­tion from the NGC to rev­enue will help im­prove fur­ther Har­talega’s earn­ings.

At the close, shares in the firm were traded at RM6.31 apiece.

High cer­ti­fi­ca­tion: A Har­talega fac­tory in Batang Ber­jun­tai. The group is work­ing on se­cur­ing Fed­eral Drug Ad­min­is­tra­tion ap­proval for the US mar­ket.

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