Top Glove posts record 20-fold jump in quarterly profit

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PETALING JAYA: Top Glove’s net profit surged 20 times to RM2.4 billion year-on-year for the first quarter ending Nov 30 (1QFY2021) — double the RM1.2 billion in net profit it racked up the preceding quarter.

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In a statement today, the world’s largest glove-maker announced it achieved RM4.8 billion in revenue for 1QFY2021, up 294% from a year ago and 53% quarter-on-quarter.

Top Glove said sales volume grew by 34% from last year and attributed its “robust sales figures” to the strong demand for gloves in both developing and emerging markets due to the ongoing Covid-19 pandemic.

Noting that global glove demand was already growing by about 10% pre-pandemic, Top Glove said it estimated that demand will grow by 25% per annum in 2021 and 15% per annum post-pandemic.

Top Glove also said its improved profit came on the back of higher sales output, high utilisation levels which amplified production efficiency, as well as higher average selling prices (ASPs) in line with market pricing.

Top Glove has commenced quarterly dividend payments for FY2021 with a higher dividend payment incorporating a special dividend of 6%, where the total dividend per share of 16.5 sen for this quarter (1QFY2021) far exceeds the full year dividend for FY2020.

As at Nov 30, Top Glove was in a net cash position of RM3.45 billion.

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“We have performed well this quarter and much of the credit must go to our dedicated workforce of 21,000 who have worked very hard, smart and fast to ensure our gloves reach those who need it the most, despite several operational challenges,” managing director Lee Kim Meow said.

Top Glove’s complex of factories in Meru, Klang, has been at the centre of the country’s biggest Covid-19 outbreak, the Teratai cluster.

The cluster recorded 78 new cases yesterday for a total of 5,256 cases.

Stating that the company was “saddened” that some of its employees have been infected by Covid-19, Top Glove said “every effort” had been extended to provide its employees with a safe and healthy operating environment.

“Having a good set of numbers is important but we also want to positively impact the well-being of the employees and community around us,” Lee said.

“Employee health, safety and well-being are at the heart of much of what we do, but we are mindful there is much more to be done to uplift the standard of our employees’ welfare and promise to rectify shortcomings immediately.

“We recognise the need for us to continue improving and to comply with international standards in terms of employee welfare, which we aspire to achieve. We seek our stakeholders’ kind understanding and support while we continue to enhance employees’ wellbeing.” – FMT

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