Top Glove plans to turn around by end-FY24

KUALA LUMPUR: Top Glove Corporation Bhd hopes to turn around by the end of the 2024 financial year, said its managing director Lim Cheong Guan.

He said that based on what the company observed, the trend appears to be moving in a positive direction.

“There’s an improvement in demand and cost structure. In terms of cost efficiency, it has become lighter (as the organisation has found ways to reduce or optimise its costs).

“Even the general cost has decreased. Looking ahead, it’s challenging to pinpoint exactly which quarter will show these improvements, but we hope to see some of them breaking even or turning profitable by the end of the 2024 financial year,” he said during the company’s financial results briefing conducted online today.

Regarding dividends, he said the company’s policy remains unchanged.

“We still adhere to a 50 per cent payout in terms of our dividend policy, and our cash flow strength is on the rise, aligning with our improving profit position.

“So, rest assured, the dividend policy remains consistent,” he said.

Lim anticipated growth in sales volume is attributed to a consistent upward trend, driven by robust sales orders in recent months.

“This serves as a compelling indication of the gradual depletion of excess glove stocks and heightened utilisation.

“Despite the challenges posed by higher raw material costs, our financial performance has shown signs of improvement, with losses narrowing and earnings before interest, taxes, depreciation and amortisation (EBITDA) strengthening,” he said.

He said the company’s net cash position continues to improve, even in the face of a loss situation, aligning with its commitment to enhancing profit margins above variable costs.

“We also maintain an unwavering dedication to our sustainability journey as we work towards achieving our net-zero carbon goals. We are committed to complying with the new European Union Deforestation Regulation (EUDR),” he added. – BK