Top Glove Corporation for the 1QFY2023 recorded Sales Revenue of RM633 million and Loss After Tax of RM158 million, while Sales Volume (Quantity Sold) eased about 48% year on year as it continued to be impacted by persistent headwinds.
The glovemaker said the softer financial performance was attributed to the ongoing glove supply/demand imbalance which saw customers holding off restocking activity as they continued to deplete existing glove inventory, coupled with a lack of urgency to place orders in light of excess production capacity within the glove industry. In addition, average selling prices (ASPs) for gloves continue to adjust while the Group contends with intensifying competition, particularly from regional glove manufacturers, compounding the prevailing softer glove demand.
Top Glove’s revenue for 2021 stood at RM1.611 billion for the same preceding period 2021 while profit was at RM202 million.
However, the Group notes that the decline in glove ASPs is slowing down, indicating the downtrend will not continue indefinitely. The Group also expects to derive some benefits from the declining trend n raw material prices; where average natural latex concentrate prices have declined by 7% to RM4.73/kg and nitrile latex prices have decreased by 49% to USD0.91/kg year on year.
Top Glove said it maintains the long term outlook for the glove industry remains positive, as glove demand continues to
grow by 10% yearly, spurred by heightened glove usage and hygiene awareness post pandemic.
Mr Lim Cheong Guan, Managing Director of Top Glove observed, “We are operating amidst several headwinds which have afflicted the industry for the past 6 months. This is expected as we go through the process of normalisation which will precede our eventual recovery.”
