Hartalega reported its second-quarter results today (7 Oct) registering a lower revenue of RM 452 million, a decrease of RM 132 million or 22.7% from the corresponding quarter in the preceding year (Q2FY23). The lower sales revenue it said was primarily attributed to lower sales volume and lower average selling price (ASP).
The Group registered a lower operating profit of RM 16 million in tandem with the drop in revenue, after offset by savings arising from lower operating costs. Nevertheless, the Group registered a higher profit before tax margin in Q2FY24 of 7.9% as compared to 6.4% in Q2FY23, mainly due to foreign exchange gain and higher interest income.
As for the 6 months (6MFY24), the Group registered a lower revenue of RM 892 million, a decrease of RM 538 million or 37.6% from the corresponding period in the preceding year (6MFY23). The Group recorded a loss before tax of RM 9 million as compared to a profit before tax (PBT) of RM 171 million in 6MFY23. The decrease was mainly due to lower sales volume by 27% as well as lower ASP, after offset by lower raw material and labour costs.
The Group said it would have recorded a PBT of RM 38 million as compared to a PBT of RM 171 million in 6MFY23 should the one-off provision for severance pay of RM 47 million for Bestari Jaya decommissioning recognised in Q1FY24 be excluded.
On a QoQ basis, revenue increased by RM 12 million or 2.7% as compared to the preceding quarter (Q1FY24) mainly due to the improvement in sales volume of 8%.
On the outlook, Hartalega said notwithstanding the ongoing market adjustment, glove consumption is expected to grow over the long term with increased glove usage, especially from emerging markets that have a low glove consumption base. The increase in demand could also be driven by the higher awareness of hygiene and health consciousness among healthcare practitioners post-pandemic
