Top Glove Corporation Bhd announced its financial results for the Third Quarter ended 31 May 2023 (3QFY2023), registering an improved set of results with a decline in sequential operational losses, driven by increased average selling prices (ASPs) as well as ongoing quality and cost optimisation measures.
For 3QFY2023, the Group registered Sales Revenue of RM531 million, while Loss After Tax was RM120 million, which has improved from its Loss After Tax of RM155 million in 2QFY2023.
Amidst a challenging business landscape, the Group’s overall operating performance improved as Loss After Tax was reduced by 23% from the previous financial quarter, attributed to an increase in glove ASPs of 6%, coupled with quality and cost optimisation initiatives to streamline operations.
Raw material prices for 3QFY2023 were on an uptrend quarter on quarter, with the average natural latex concentrate price up by 2% to RM4.78/kg while the average nitrile latex price also increased by 7% to USD0.92/kg. Meanwhile, natural gas price was on the decline, decreasing 14% from RM67.16/MMBtu to RM57.74/MMBtu. Charting its path to recovery, the Group has in place a 6 point comeback strategy, the Top Glove Turnaround Plan (T6).
While there has been oversupply and customer stockpiling over the past 2 years, it is important to note that glove consumption itself has not decreased. On the contrary, glove consumption has gone up post pandemic, on the back of elevated hygiene and health awareness.
