For the current quarter ended 30 June 2022, Comfort Glove achieved higher sales revenue of RM199.8 million, an increase of RM23.4 million or 13% compared with Q1. The turnover of the Group is showing an increasing trend for Q2 mainly contributed from the increase in sales volume. With the reduction of raw material costs and tightening of cost control measures, the Group recorded a profit after tax of RM3.19 million for the quarter. The profit after tax of RM3.19 million for the quarter (2QYE22) improved by RM13.32 million or 132% compared with the preceding quarter which registered RM10 million in losses.
The Group continues to be affected by the decreasing price of gloves globally, for the six-month ended 30 June 2022, the Group achieved sales revenue of RM376.19 million with a loss of RM6.93 million, the glove maker who was seeing phenomenal revenue in 2021 said the loss due to the reduction in average selling price, softening of market demand, and excessive supply globally.
Additionally, the rising global logistics disruption, soaring shipping costs, rising natural gas prices, and implementation of minimum wages effective in May are also putting pressure on margins.
In future prospects, Comfort believes the rubber glove industry is undergoing a paradigm shift due to oversupply conditions thus the gloves market demand remains weak. The implementation of the new Minimum Wages Order elevated gas price and rises in other production costs while the Average Selling Price remained soft will continue to be the challenges faced by the Group for the current financial year.
The Group remains optimistic towards its long-term prospects and continues to build on and maintain a solid foundation to ensure that it is well positioned to seize market opportunities and continue to develop and succeed in the years ahead.
