Strong demand for gloves Top gloves swung to a profit in the third quarter

Due to strong demand for gloves, Top Glove turned to profit after seven consecutive quarters of losses, with a net profit of RM50.67 million in the third quarter as of end-May, compared with a net loss of RM130.59 million in the same period last fiscal year.

In the results report released at noon on Wednesday (June 19), Top Gloves pointed out that the third quarter turned a loss to profit mainly due to customers replenishing glove inventory after inventory depletion, thus promoting strong glove demand.

It also said that the resulting higher utilization rate coupled with continued quality and cost optimization measures also contributed to the earnings performance.

The group earned 0.63 cents per share in the third quarter, compared with a loss of 1.63 cents per share in the same quarter a year ago.

As demand for gloves continues to rise, the group has been able to share some of the cost increases with customers by raising average selling prices, it said.

As a result, the Group's third-quarter revenue increased by 20% to RM636.88 million from RM530.62 million in the same quarter a year ago.

It still posted a loss of RM58.2 million in the first nine months of the current fiscal year, but 87.4% less than the loss of RM463.5 million in the same period of the previous fiscal year. Revenue for the first nine months fell 5.6% year-on-year to RM1,680.7m.

As performance continues to improve quarter by quarter, Top Glove is optimistic about the outlook for the industry. It also said that with the U.S. government about to significantly increase tariffs on medical gloves from China, top gloves are expected to capture more U.S. market share.

Top Glove, which is listed second on the SGX, resumed trading in the afternoon on Wednesday and its shares are currently flat at S $0.335.