Glove markers see challeging times with volatile commodity prices
Top Glove expects the business lands cape to remain compe titive and challenging, in the face of volatilit y in commodity prices and foreign exchang e as well as higher electricity tariffs.
PETALING JAYA: Top Glove Corp Bhd’s net profit for its first quarter ended Nov 30, slipped 12.5% to RM50.28mil from RM57.49mil a year earlier, mainly attributed to the fair value gain on foreign exchange contracts of RM15.2mil that was recognised in its first quarter of 2013.
Revenue dropped to RM573.99mil from RM584.58mil in the previous corresponding period, the company told Bursa Malaysia yesterday.
It said the lower revenue was mainly due to a lower average selling price despite the increase in overall sales volume by 10%.
“The volume growth was due to the continuous demand from developed and emerging markets alike, which is expected to continue growing 8% to 10%,” it said.
On its prospects, Top Glove said it expected the business landscape to remain competitive and challenging, in the face of volatility in commodity prices and foreign exchange as well as higher electricity tariffs.
“The group will continue its improvement and transformation projects to meet such challenges,” said the company.
It also said with the completion of Factory 25, Top Glove expects to bolster its nitrile glove quality and production capacity, in line with growing demand.
“Nitrile glove output is also set to increase with the expansion of Factory 27 in Lukut (Port Dickson).
“On the proposed delisting of its 80%-owned subsidiary, Medi-Flex Ltd from the Catalist of the Singapore Exchange Securities Trading Ltd, the EGM has been fixed on Dec 30 to seek shareholders’ approval,” Top Glove added.
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