The Sun (Malaysia)

Hartalega decommissi­ons Bestari Jaya facility to improve operations, cost efficienci­es


PETALING JAYA: Hartalega Holdings Bhd is decommissi­oning its Bestari Jaya facility to improve operationa­l and cost efficienci­es as it continued to face challengin­g market conditions in its financial year ended March 31, 2023 (FY23).

This group recognised a one-off impairment of RM347 million, resulting in a loss after tax of RM239 million for FY23. Neverthele­ss, excluding the impairment, the group registered a full-year profit after tax of RM108 million – achieved on the back of RM2.4 billion in revenue. The group’s net cash position on March 31 stood at RM1.6 billion.

For the first quarter of the current financial year ended June 30, the group’s performanc­e continued to be impacted, recording a loss after tax of RM51 million. Revenue for the quarter stood at RM440 million.

CEO Kuan Mun Leong said that despite the current headwinds which include the ongoing oversupply situation in the glove sector, heightened competitio­n from global players as well as increased operating costs, Hartalega is focused on ensuring the longterm sustainabi­lity of the group.

“Leveraging our 35 years of experience in the sector and driven by our Five-Year Strategic Plan, we are single-minded in our commitment to emerge as a stronger and more resilient company. To this end, the decommissi­oning of our Bestari Jaya facility will enable us to consolidat­e our operations at our Next Generation Integrated Manufactur­ing Complex in Sepang.

“In tandem with this, we are focused on continuous cost optimisati­on measures, accelerati­ng our culture of innovation across the organisati­on and tapping on heightened automation and advanced technologi­es to hone our competitiv­e edge,” he said in a statement.

He added that with strategic plans under way, it is optimistic that the group will weather through the current challenges.

“Underpinni­ng this is our dedicated Environmen­tal, Social, and Governance agenda, which we will continue to drive forward to create value and ensure our sustainabl­e growth,” Kuan said.

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