Gloves manufacturer, Top Glove Corporation Bhd. (Top Glove) has recorded a historic quarterly sales revenue of RM5.37 billion, an increase of 336 percent compared with 2QFY2020, and 13 percent Quarter-on-Quarter (QoQ).
Profit After Tax (PAT) is at RM2.9 billion, 24 times higher versus the corresponding period in FY2020.
“The company’s strong and healthy sales figures were attributed to the continued demand for gloves globally and Top Glove is pleased to provide gloves to protect healthcare workers all over the world,” Executive Director of Top Glove, Lim Cheong Guan said.
Additionally, the sales volume (Quantity Sold) rose by 19 percent Year-on-Year (YoY), while easing eight percent QoQ due to temporary stoppages in production at the Meru, Klang factories in November and December 2020.
Top Glove will be commencing payment of Special Dividends in 2QFY21, which the Board has committed to paying from 2QFY21 to 4QFY21 in line with the company’s commitment to create value for approximately 120,000 public shareholders.
The dividend payment comprises a special dividend payout of 20 percent plus 50 percent as per the company’s dividend policy, totalling a 70 percent dividend payout. This amounts to 25.2 sen per share. The ex-dividend date is March 23, while the payment date is April 6.
During 1HFY2020, sales revenue amounted to RM10.12 billion, a jump of 315 percent. Meanwhile, PAT registered at RM5.29 billion, surging 2,220 percent or 22 times compared with 1HFY2020. As of February 28, the Group was in a net cash position of RM4.06 billion.
In 2QFY21, natural latex concentrate registered a 35 percent increase to an average of RM5.97/kg and nitrile latex went up 114 percent to an average of US$2.14/kg YoY, following shortages in supply.
However, average prices for nitrile latex have been on the downtrend since the start of 2021, easing by five percent from January to March, as supply normalises.
“The company’s remarkable and healthy profit was also attributed to ongoing enhancements across its operations, through digital transformation, continuous R&D and innovation, quality and productivity initiatives and talent acquisition and development,” he concluded.