Hartalega’s Q1 net profit surges to RM2.26b on higher sales revenue

04-Aug-2021 Intellasia | Malay Mail | 5:02 AM Print This Post

Hartalega Holdings Bhd’s net profit for the first quarter (Q1) ended June 30, 2021 jumped to RM2.26 billion from RM219.72 million while revenue soared to RM3.90 billion versus RM920.08 million.

In a statement today, chief executive officer Kuan Mun Leong said the glove maker’s performance was achieved on the back of higher average selling prices (ASP) and increased sales volume, although this was partially offset by the increase in raw material prices.

“Moving forward, while average selling prices for nitrile gloves have been declining from its peak, global demand is expected to remain heightened, particularly due to new Covid-19 variants affecting countries worldwide,” he said.

For the longer term, he said the structural step-up in demand in the glove sector will further spur demand growth, driven by increased glove usage from emerging markets with low glove consumption per capita and increased hygiene awareness.

Kuan said to cater to this demand growth, the group would continue with its expansion plans via its Next Generation Integrated Glove Manufacturing Complex (NGC) and NGC 1.5.

“To date, eight out of 10 lines of Plant 7 of the NGC have been commissioned.

“Once fully completed, Plant 7 will have an annual installed capacity of 2.7 billion pieces,” he said.

In addition, Kuan said that construction for the upcoming expansion, NGC 1.5, is currently underway, with the first production line targeted to be commissioned by December 2021.

“Once NGC 1.5 is fully completed, it will comprise four manufacturing facilities contributing 19 billion pieces of gloves to our annual installed capacity.

“With these expansion plans in place, the group’s annual installed capacity is expected to increase to 63 billion pieces over the next two to three years,” he said.

Kuan also said that the company continues to safeguard its employees and ensure operational continuity through strict Covid-19 preventive measures.

In tandem with the government’s objective of increasing the Covid-19 vaccination rate in Malaysia, he said that Hartalega has commenced an immunisation initiative through the Public-Private Partnership Covid-19 Industry Immunisation Programme (Pikas).

“To date, over 90 per cent of Hartalega’s employees including migrant workers, have completed the first dose of vaccination, with the second dose targeted to be completed by the end of this month,” Kuan said.

https://www.malaymail.com/news/money/2021/08/03/hartalegas-q1-net-profit-surges-to-rm2.26b-on-higher-sales-revenue/1994853

 

Category: Malaysia

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