Top Glove Corp Bhd’s (Top Glove) net profit fell 48.3% on year (YoY) to RM607.95 million in the fourth quarter (Q4) ended August 31, from RM1.18 billion previously, as reported by New Straits Times.
In an exchange filing today, Top Glove stated that this was due to lower sales volume, which was impacted by the finding imposed by US Customs and Border Protection (CBP), the effects of which were felt for the entire three-month period during Q4.
Nonetheless, on September 10, the finding was lifted, allowing Top Glove to resume exporting gloves to the United States. Additionally, Top Glove said the Enhance Movement Control Order (EMCO) imposed during Q4 had adversely affected the company’s operations in Selangor for 10 days.
Top Glove’s Q4 revenue reduced 31.8% to RM2.12 billion from RM3.11 billion, mainly dragged by lower average selling prices (ASPs) at a steeper rate than raw material prices. For the financial year ended August 31 (FY21), Top Glove’s net profit increased more than four-fold YoY to RM7.87 billion from RM1.75 billion, while revenue catapulted 126.5% to RM16.40 billion from RM7.24 billion.
Top Glove’s net cash position remained healthy at RM2.05 billion as of August 31.