Hartalega reported its first quarter FY2027 results recording a revenue of RM605.8 million, an increase of RM52.6 million or 9.5%, as compared to the corresponding quarter of the previous financial year (Q1FY26). The revenue growth was primarily driven by higher average selling prices (ASPs), which more than offset the lower sales volumes and helped mitigate the impact of higher raw material costs arising from the Middle East conflict.
The Group recorded an operating profit of RM80.0 million for the quarter, an increase of RM72.3 million compared to Q1FY26. The improvement was mainly driven by higher ASPs and ongoing cost optimisation initiatives, including tighter cost control, improved production efficiency, and lower unit production costs. These measures helped mitigate the impact of lower sales volume and pricing pressure in a highly competitive market.
The Group registered a profit before tax of RM90.5 million, compared with RM14.3 million in Q1FY26 while profit after tax was RM70 million up from RM12 million recorded in the same period in the year before.
The increase was primarily attributable to higher operating profit, increased investment related income and significantly lower net foreign exchange losses during the period. While revenue and profitability improved, the operating environment remained challenging. Industry-wide oversupply, intense price competition from Chinese manufacturers, structural overcapacity, and ongoing geopolitical uncertainties continue to weigh on performance.
