Top Glove’s Q3 profit surges to RM2.04b
Published on: Thursday, June 10, 2021
By: Bernama
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Kuala Lumpur: Top Glove Corporation Bhd’s net profit surged to RM2.04 billion for the third quarter ended May 31, 2021 (Q3 FY2021), from RM347.90 million in the same period last year.

In a filing with Bursa Malaysia, the company said its revenue soared to RM4.16 billion from RM1.69 billion previously due to the continued demand for gloves globally driven by the ongoing pandemic. 

The world’s largest glove maker has declared a third interim dividend of 18 sen, consisting of a third interim dividend of 12.70 sen per share and a special third interim dividend of 5.30 sen per share.

“The ex-date for the dividend is June 23, 2021, while the payment date is July 4, 2021,” it said.

Top Glove said the total dividend declared for the cumulative nine-month period ended May 31, 2021 (9M FY2021) was 59.7 sen per share, representing a 406 per cent increase from the full year dividend for FY2020 of 11.8 sen per share.

For 9M FY2021, the company’s net profit skyrocketed to RM7.26 billion from RM575.0 million previously, while revenue jumped to RM14.29 billion versus RM4.13 billion previously.

The group’s net cash position as at May 31, 2021, remained strong at RM4.23 billion, it said.

Meanwhile, in a press statement, Top Glove said its sales revenue and profit after tax were softer quarter-on-quarter (q-o-q), easing 22 per cent and 29 per cent respectively, and the sales volume (quantity sold) also declined four per cent q-o-q.

“The softer q-o-q results for Q3 FY2021 was due to the declining average selling prices (ASPs) in line with glove market pricing trends, as well as the impact of glove sales from Malaysia to the United States (US), which we are working closely with the US Customs and Border Protection (CBP) to speedily resolve,” said managing director Datuk Lee Kim Meow.

On raw material prices, Top Glove said they rose during the quarter under review, with average natural latex concentrate prices up by eight per cent to RM6.31 per kg while nitrile latex prices increased marginally by 0.4 per cent to US$2.31 per kg q-o-q.

“Going forward, raw material prices are expected to be on a downtrend, which will benefit the group,” it said, adding global glove demand was expected to remain resilient as glove usage continued to rise, driven by the ongoing pandemic.  


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