Ca­pac­ity ex­pan­sion, higher de­mand lift Har­talega Q2 earn­ings

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Nitrile glove man­u­fac­turer Har­talega Hold­ings Bhd saw its net profit in the sec­ond quar­ter ended Sept 30, 2016 (Q2FY16) jump 17.9% to RM71.2 mil­lion, from RM60.4 mil­lion in the pre­vi­ous cor­re­spond­ing quar­ter, mainly driven by the group’s con­tin­u­ous ex­pan­sion in pro­duc­tion ca­pac­ity and in­crease in de­mand.

Rev­enue was up 15.2% to RM436.97 mil­lion, com­pared with RM379.34 mil­lion a year ago, at­trib­uted by in­crease in sales vol­ume.

Har­talega de­clared a first in­terim div­i­dend of 2 sen per sin­gle tier share for its fi­nan­cial year end­ing March 31, 2017, as per the en­ti­tle­ment date on Dec 9, 2016 and payable on Dec 29, 2016.

“The group’s solid per­for­mance was mainly driven by our con­tin­u­ous ex­pan­sion in pro­duc­tion ca­pac­ity, namely via our Next Gen­er­a­tion In­te­grated Glove Man­u­fac­tur­ing Com­plex (NGC),” its man­ag­ing di­rec­tor Kuan Mun Leong said in a state­ment yes­ter­day.

Kuan said the group will con­tinue to build up its ca­pac­ity at a mod­er­ate pace.

“With our strate­gic plans in place, we are con­fi­dent we are well-po­si­tioned to main­tain our mo­men­tum and meet steady de­mand growth year-on-year,” Kuan said.

Mean­while, Har­talega said its earn­ings per share (EPS) for the quar­ter un­der re­view was 4.34 sen com­pared with 3.69 sen for the same quar­ter last year.

For the six-month pe­riod, the group’s net profit in­creased 3.5% to RM127.39 mil­lion, from RM123.09 mil­lion pre­vi­ously, while rev­enue jumped 19.9% to RM838.8 mil­l­lion, from RM699.9 mil­lion in the same pe­riod last year.

For the six-month pe­riod, EPS was 7.76 sen com­pared with 7.51 sen in the pre­vi­ous year’s cor­re­spond­ing pe­riod, while net as­sets per share was 96 sen as at Sept 30, 2016.

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