Comfort Glove recorded revenue of RM90.2 million in the second quarter that ended 30 June 2023 as compared to the preceding year’s corresponding quarter of RM199.8 million, representing a decrease of 55% and with a loss after tax of RM4.2 million as compared with profit after tax of RM3.2 million for the corresponding quarter of the preceding financial period ended 30 June 2022.
The group said the lower revenue for the second quarter compared to the corresponding quarter of FY 2022 was primarily due to a decrease in sales orders from both local and overseas customers. Increased in loss after tax mainly due to erosion of margin resulting from higher costs including energy, cost, natural rubber costs, electricity tariffs and lower average selling price (“ASP”). The loss after tax was further affected by a provision for taxation on the profit of a subsidiary, amounting to RM2.5 million.
The loss after tax of RM4.2 million was 86% lower than the loss after tax of the preceding quarter of RM29.1 million. This resulted from increased ASP, the Group implemented measures to control costs effectively, which helped in reducin expenses and limiting losses. During the quarter and gains from strengthening USD against Ringgit Malaysia, the Group net foreign exchange gain for second quarter ended 30 June 2023 was RM8.1 million compared with RM0.8 million in the preceding quarter.
Despite the current challenging conditions, Comfort Glove maintains an optimistic view of the long-term prospects for the rubber glove industry, given the continued essential utilization of gloves in the healthcare, industrial, and food sectors.
