Top Glove Bhd announced a pre-tax profit of RM112.275 million on the back of a turnover of 1,449, 297 million for the second quarter ended February 2022 from a pre-tax profit of RM3,724,994 million on the back of a turnover of 5,365, 482 million for the same period previously.
In a Bursa filing, it said that the softer financial performance came on the back of normalising average selling prices (ASPs) which are moving closer to pre-pandemic levels. Raw material prices were generally on a downward trend, decreasing at a slower pace than ASPs, which resulted in margin compression.
It said that the group also had to contend with increases in other operating costs including utilities, manpower, and chemical costs; as well as intensifying competition, with the new glove supply causing pricing pressure considering the successful Covid 19 vaccine rollout globally.
On prospects, it said that the Group’s growth strategy will include a combination of organic expansion, inorganic expansion and strategic investments. By 31 December 2025, Top Glove is projected to have a total of 58 factories comprising 45 glove factories and 13 other factories, 1,400 glove production lines, and a glove production capacity of 188 billion gloves per annum.
