Hartalega earnings up 72% in first quarter

PETALING JAYA: Hartalega Holdings Bhd’s net profit for the first quarter ended June 30, 2017 rose 71.6% to RM96.39 million from RM56.18 million a year ago, mainly due to increase in sales volume and average selling price, strengthening of US dollar and improvement in operation efficiency.

Its revenue increased by 49.6% to RM601.04 million compared with the corresponding quarter of previous financial year of RM401.83 million in line with the group’s continuous expansion in production capacity and increase in demand.

Hartalega said demand for rubber gloves remains in resurgent mood with demand supply dynamics in healthy balance. The nitrile wave continues with 60% of Malaysian rubber glove export denominated by nitrile gloves. Hartalega NGC’s capacity growth is on track to meet the increasing demand for rubber gloves.

“We have completed commissioning of Next Generation Complex (NGC) Phase 1 comprising Plant 1 and 2 in early 2016 and have completed Phase 2 Plant 3 in June 2017. We will begin commissioning of the first production line at Plant 4 in August 2017 and the remaining production lines will be commissioned progressively. Plant 4 is scheduled to complete in first quarter of calendar year 2018. The progressive commissioning of Plant 4 is expected to contribute further to group earnings,” Hartalega said in a stock exchange filing.

The group said it continues to forge forward by focusing on quality, maintaining high utilisation rates and concerted efforts to enhance efficiency via cost management, economies of scale and technological integration in order to sustain organic growth.

“We remain committed to executing our deliverables and meeting our targets.”