Top Glove narrows net loss to RM57.71mil in 1Q

KUALA LUMPUR: Top Gove Corp Bhd started its 2024 financial year (FY24) with a notable improvement to its bottomline.

On a year-on-year comparison, the world’s largest glove maker recorded a net loss of RM57.71mil in 1QFY24, which compares against a net loss of RM168.24mil in 1QFY23.

Basic loss per share was 0.72 sen against 2.1 sen in the year-ago quarter.

The group’s revenue in the current quarter was RM493.46mil, down from RM632.53mil in the previous comparative quarter.

Compared to the immediate preceding quarter (4QFY23), Top Glove’s revenue in 1QFY24 rose 4% while loss after tax was reduced by 90% given the one-off impairment of RM392mil in the previous quarter.

According to managing director Lim Cheong Guan, the group’s improved results were driven by its ongoing operational, quality and cost optimisation efforts which helped offset the increase in raw material prices.

Additionally, he said the uptick in sales volume which led to increased utilisation and efficiencies, also had a positive effect on the bottom line.

“This is testament to the effectiveness of our ongoing quality and cost optimisation, and operations enhancement measures outlined in the Top Glove Turnaround Plan.

“With glove orders resuming, we believe this is also indicative of the market rebounding, and we are hopeful of making a sustained recovery in the coming quarters,” he said in a statement.

He added that the group maintained a positive mid- to long-term outlook on the glove industry as glove are an essential, single-use item in the healthcare, industrial and F&B sectors with no viable replacement.

Lim said the Group is also optimistic that global glove demand growth of approximately 8% will resume in time to come, along with glove consumption; driven by customers’ replenishment of depleting glove stockpiles as well as robust industry fundamentals, and further spurred by increased health and hygiene awareness post pandemic.

“Going forward, our focus will remain on bolstering our core glove business, through quality and cost enhancement initiatives, so we are well positioned to maintain the upswing in our performance and expedite our recovery,” said Lim.