For the 6 months ended 30 June 2022, Kossan Rubber recorded revenue of RM1.28 billion, a decrease of 71.1% as compared with RM4.43 billion in 1H21 due to lower revenue from all three divisions. Profit before taxation decreased by 93.4% to RM184.13 million as compared with RM2.78 billion in 1H21 in tandem with the lower revenue.
The Gloves division’s revenue decreased by 73.3% to RM1.13 billion in 1H22 as compared with RM4.22 billion in 1H21 due to the lower average selling price (ASP) and volume sold. PBT decreased by 94.0% to RM164.34 million in 1H22 as compared with RM2.75 billion in 1H21 in tandem with the lower revenue. The TRPs division’s revenue decreased by 4.4% to RM87.88 million in 1H22 as compared with RM91.94 million in 1H21 due to lower deliveries from the Automotive segment. PBT decreased by 32.2% to RM9.08 million as compared with RM13.40 million in 1H21 in tandem with the lower revenue.
The Clean-Room division’s revenue decreased by 49.5% to RM59.31 million in 1H22 as compared with RM117.51 million in 1H21 due to lower ASP in Clean-Room’s products. PBT decreased by 86.7% to RM3.35 million in 1H22 as compared with RM25.15 million in 1H21 in tandem with the lower revenue.
For the second quarter ended 30 June 2022, the Group registered revenue of RM589.86 million, a decrease of 73.6% as compared with RM2.24 billion in 2Q21 due to the decrease in revenue from the Gloves, TRP and Clean-Room divisions. Profit before taxation (“PBT”) was RM64.30 million, decreasing 95.4% as compared with RM1.40 billion in 2Q21 in tandem with the lower revenue.
The Gloves division recorded revenue of RM517.71 million in 2Q22, decreasing 75.3% from RM2.09 billion in 2Q21 due to the lower average selling price (ASP) and volume sold. PBT decreased 96.1% to RM53.33 million in 2Q22 as compared with RM1.36 billion in 2Q21 in tandem with the lower revenue. The TRPs division recorded revenue of RM38.57 million in 2Q22, decreasing 23.5% as compared with RM50.40 million in 2Q21 due to lower deliveries in TRPs products. PBT decreased 42.0% to RM4.00 million as compared with RM6.89 million in 2Q21 in tandem with the lower revenue.
Due to the headwinds affecting the glove sector, the Group expects the performance in the second half of FY2022 to be challenging. As such, the Group will place its near-term expansion plans on hold subject to prevailing market conditions. However, the Group remains positive on the glove industry and will continue to focus our efforts on accelerating our transformation and reinvestments into digitalisation and automation to increase productivity and efficiency
