Kossan Rubber reported its financial report for the 2023, with a revenue of RM1.59 billion, a decrease of 32.34% as compared with RM2.34 billion in FY22. Profit before taxation for FY23 was RM35.85 million as compared with PBT of RM213.52 million for FY22. PAT dropped significantly from RM157 million to RM14 million.
The group said both the decrease was recorded from the Gloves and Clean-Room division. The Gloves division’s revenue decreased by 35.84% to RM1.28 billion in FY23 as compared with RM2.00 billion in FY22. Loss before tax (LBT) was RM25.07 million in FY23 as compared with PBT of RM142.31 million in FY22. The decrease Kossan said was mainly due to a one-off impairment loss and write off of plant and machinery amounting to RM35.38 million and RM4.41 million respectively. This was compounded by lower sales volume, lower average selling price (ASP) and higher natural gas cost in FY23.
The TRPs division’s revenue increased by 3.93% to RM204.75 million in FY23 as compared with RM197.01 million in FY22. PBT increased by 60.68% to RM37.46 million as compared with RM23.31 million in FY22 due to higher margin infrastructure products. The Clean-Room division’s revenue decreased by 33.23% to RM96.92 million in FY23 as compared with RM145.16 million in FY22 due to lower ASP in Clean-Room’s products. PBT decreased by 15.18% to RM9.63 million in FY23 as compared with RM11.35 million in FY22 in tandem with the lower revenue
For the fourth quarter ended 31 December 2023, the Group recorded revenue of RM400.15 million, a decrease of 16.89% as compared with RM481.45 million in 4Q22 due to the lower revenue from Gloves and CleanRoom divisions. Profit before taxation (PBT) increased by 259.21% to RM3.43 million as compared with PBT of RM0.96 million in 4Q22.
Despite the challenging landscape mentioned, the Group is cautiously optimistic about its performance for FY2024.
