Rubber glove payer Hartalega reported its Q3 results registering a lower revenue of RM 416 million, a decrease of RM 46 million or 10% from the corresponding quarter in the preceding year (Q3FY23), which the group was primarily attributed to lower sales volume and average selling prices. Despite the lower revenue, the Group registered a higher profit before tax (PBT) of RM 29 million during the quarter as compared to a loss before tax of RM 31 million in Q3FY23.
The improved performance was mainly due to lower raw material costs and utilities expenses, better production efficiency arising from higher capacity utilisation as well as cost savings from the operational rationalisation exercise. In addition, the Group also recorded higher interest income and a reversal of certain provision no longer required during the quarter.
For the 9 months ended 31 December 2023 (9MFY24), the Group registered a lower revenue of RM 1.3 billion, a decrease of RM 584 million or 30.9% from the corresponding period in the preceding year (9MFY23). The drop in revenue was primarily attributed to notable lower sales volume as the industry is still facing supply chain inventory adjustment coupled with a decrease in ASP. The decrease in revenue further led to the operating loss recorded for 9MFY24, albeit partially offset by lower raw material cost and operating expenses during the period.
Despite the lower revenue, the Group recorded a PBT of RM 20 million, mainly attributed to the foreign exchange gain and higher interest income for the period under review.
Looking ahead, the group said global oversupply of rubber gloves is expected to persist even as the sector continues with its
adjustment phase. As such, pressure on average selling prices would remain amid challenging demand supply fundamentals. Notwithstanding, the capacity rationalisation exercises undertaken by certain key domestic manufacturers together with the exit of some smaller players have helped to relieve a certain degree of oversupply pressure in the market.
