Top Glove continues to ride on the tailcoats of rubber glove demands in the world seeing its first quarter or 1QFY21 sales delivering whopping RM4.8 billion revenue, up 294% compared to the same period in 2020.
The jump is also seen in its quarter to quarter basis with an increase of 53%, according to the statement issued to investors the group attributed the robust sales figures to strong demand for gloves in both developing and emerging markets, owing to the ongoing global pandemic. At the same time the group has earmarked RM10 billion for CAPEX over the next 5 years from FY2021 to FY2025, which is to increase capacity by an additional 100 billion pieces of
On the issue of failing to comply with worker quarter standards, Top Glove has implemented COVID-19 preventive SOPs and will continue to adhered on a stringent basis and strengthened as required. In the meantime, it will continues to actively engage with the U.S. Customs Border and Protection towards the expeditious upliftment of the Withhold Release Order (WRO), for which it said was making good progress.
Commenting on the Company’s results, Dato’ Lee Kim Meow, Managing Director of Top Glove said, “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”. “We are humbled to have a crucial role in helping protect and save lives in Malaysia and all over the world with our gloves. It saddens us that some of our employees have also been affected by COVID.
- Keeping to its firm commitment to reward its approximately 100,000 public shareholders, 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. The dividend ex-date is 24 December 2020 and it is payable on 11 January 2021. The total dividend payout ratio of 56% of the Profit which exceeds its established dividend payout policy of 50% includes the 6% special dividend in light of the Group’s extra good performance and in appreciation of its shareholders’ support. As at 30 November 2020, the Group was in a net cash position of RM3.45 billion.
- The challenging and competitive landscape notwithstanding, the Company maintains an optimistic outlook on prospects. With the pandemic, Top Glove estimates that glove demand will keep growing, by 20% per annum in 2020, 25% per annum in 2021 and 15% per annum post-pandemic. The steady increase in sales orders from its loyal customers in 195 countries across the world, alongside capacity building plans and technology-driven quality, productivity and efficiency improvements, bode well for the Group’s performance going forward.
About Top Glove Corporation Bhd
Top Glove Corporation Bhd is listed on the Bursa Malaysia Stock Exchange