Top Glove Corporation Bhd announced its financial results for the Fourth Quarter (4QFY2023) and full financial year 2023 (FY2023) ended 31 August 2023, reporting a loss After Tax of RM454 million after incorporating a one-off impairment on goodwill, property, plant, and equipment amounting to RM389 million which it said has no impact on cash flow.
Excluding impairment, the Group’s 4QFY2023 performance would have improved with a narrower Loss After Tax of RM65 million. Meanwhile, the Group’s 4QFY2023 EBITDA and cash flow from operations were positive, as the glove industry progressed toward recovery from a protracted period of demand-supply imbalance.
For FY2023, the Group posted Sales Revenue of RM2.26 billion and Loss After Tax of RM887 million. Excluding impairment, the full financial year’s Loss After Tax would have amounted to RM498 million. The Group’s 4QFY2023 financial performance as compared to earlier quarters within FY2023 was attributed to its ongoing quality and cost optimisation initiatives, driven by its turnaround plan.
Among them were streamlining its production facilities, which saw the Group leveraging newer and more efficient factories while temporarily ceasing operations at some of its factories, thereby saving operation, utilities, and manpower costs. The Group continued to focus on securing orders which generated positive cashflow and better margins, and Sales Volume eased quarter on quarter. ASPs were also reduced slightly while raw material prices trended downwards, enabling the Group to balance sharing out cost savings with customers and preserving margins to offset fixed costs.
