Kossan Rubber net profit jumps to RM2.85 billion in FY21

KUALA LUMPUR: Kossan Rubber Industries Bhd’s net profit soared to RM2.85 billion in the financial year ended Dec 31, 2021 (FY21) against a net profit of RM1.08 billion in FY20.

Revenue surged 82.97 per cent to RM6.66 billion in FY21 from RM3.64 billion in FY20, due to higher revenue from all three divisions, namely gloves manufacturing, technical rubber products (TRP) and cleanroom operations. Profit before taxation increased by 160 per cent to RM3.74 billion compared with RM1.44 billion in FY20, mainly due to the higher average selling price (ASP) of gloves.

In the near term, the company said the glove business is expected to be challenging with the supply and demand imbalance persisting. The group expects the continued tapering of glove demand and ASP from the heights of the pandemic as a result of the rollout of mass vaccinations globally.

“Even with the Omicron variant, the percentage of Covid19 cases categorised as severe has declined compared to the earlier stages of the pandemic,” it said in a filing with Bursa Malaysia.

Moving forward, the glove maker said it will continue with its transformation plan where structural changes have been implemented throughout the organisation, with a focus on operating efficiency which will allow the group to be resilient even in the face of rising costs and heightened competition.

The group has accelerated reinvestments into digitalisation and automation of its plants to increase productivity and to prepare the group for its next phase of growth.

Post-pandemic, the glove industry will continue to experience stable growth underpinned by higher healthcare standards and hygiene awareness in both the medical and non-medical sectors, it said. — Bernama