Hartalega’s Q1 net profit surges 134 pc

05-Aug-2020 Intellasia | Malay Mail | 6:02 AM Print This Post

Hartalega Holdings Bhd’s net profit surged 134 per cent to RM219.72 million in the first quarter ended June 30, 2020, from the RM94.06 million chalked up in the same period last year.

Revenue soared to RM920.09 million from RM640.10 million previously, the glove manufacturer and supplier said in a filing with Bursa Malaysia today.

The strong performance was driven by higher sales revenue, on the back of increased sales volume and higher average selling price.

This was further supported by lower raw material and energy costs, as well as the group’s continuous cost optimisation initiatives, it said.

The group’s earnings per share for the quarter under review stood at 6.49 sen while net assets per share was RM0.80 as at June 30, 2020.

Chief executive officer Kuan Mun Leong said market demand was exceptionally strong during the quarter due to the unfortunate Covid-19 pandemic.

“With a new wave of cases emerging in the US, Latin America and India, along with upticks in other countries across the world, this surge in demand growth is expected to continue in the coming years.

“Due to the global shortage of gloves, average selling prices are expected to see upward revisions in the coming quarters, in line with prevailing market price,” he said.

Kuan said due to the demand, Hartalega continues to ramp up its capacity expansion plans via its Next Generation Integrated Glove Manufacturing Complex (NGC).

“For Plant 6 of the NGC, eight out of 12 production lines have been commissioned, while for Plant 7, the first production line is on-track for completion by October 2020. All remaining examination glove production lines for Plant 7 are targeted to be completed by March 2021.

“Meanwhile for our next expansion phase of NGC 2.0, we aim to commission the first production line in the first half of 2022. The NGC 2.0 facility will provide an annual installed capacity of 32 billion pieces once completed,” he said.

With such plans in the pipeline, Kuan added, Hartalega would be able to continue delivering its gloves to front liners across the globe without disruption, in addition to ensuring that the group is well-equipped to cater to future demand growth in the years to come.

https://www.malaymail.com/news/money/2020/08/04/hartalegas-q1-net-profit-surges-134-pc/1890896

 


Category: Malaysia

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