Malaysian glove maker Top Glove Corporation Bhd delivered a record-breaking profit for the first quarter ended November 30 2015 (1QFY16).
Profit Before Tax (PBT) came in at an all-time quarterly high of RM161.3 million, surging 172.9% compared with 1QFY15 and 20.1% higher than 4QFY15. PBT margin also registered a marked improvement at a robust 20.2% versus 10.4% 1QFY15.
Profit After Tax (PAT) was equally strong at RM128.9 million, representing 46% of the net profit achieved for the entire FY2015. This also signifies growth of 163% and 24.9%, year-on-year and quarter-on-quarter respectively.
Meanwhile, PAT margin stood at 16.1%, almost doubling that of 1QFY15’s PAT of 8.6%. Meanwhile, Revenue for the Group also attained a quarterly record high of RM800.3 million, a 41% growth against 1QFY15 and a 12.8% increase over 4QFY15.
Top Glove also achieved the highest quarterly sales volume (quantity sold), which signifies a growth of 15% against 1QFY15, largely attributed to nitrile glove sales which increased 54% compared with 1QFY15.
The profit came on the after improvements implemented across the Group’s operations. These efforts, which focus intensively on automation, R&D and re-engineering, have led to enhanced quality output and substantially reduced downtime, resulting in increased levels of efficiency throughout the manufacturing process.
The strong US Dollar and lower raw material prices have further boosted the Group’s performance. For 1QFY16 average latex prices fell by 9.8%to RM3.96/kg while average nitrile latex prices softened by 4.6% to USD1.03/kg compared with 4QFY15.
“We are pleased to have maintained our upward momentum to continue delivering yet another record high this quarter. We have been consistently investing resources in improving our quality and efficiency, and it is encouraging to see our efforts bear such positive results”, Tan Sri Dr Lim Wee Chai, the Chairman of Top Glove commented.
“While we have benefited from the strong US Dollar, our performance is not reliant on tailwinds, the effects of which are only temporal,” Tan Sri Dr Lim clarified.