Top Glove Corporation has reported a narrower loss after tax of RM57.7 million ($16.4 million) for the 1QFY2024 ended Nov 30, 2023, compared to the loss of RM168.2 million for the quarter before.
The group’s loss after tax stood at RM47.2 million, which is also a fraction of its loss after tax of RM157.6 million in the corresponding quarter in the year before. In the 4QFY2023, Top Glove had to pay off a RM392 million impairment as well.
The group saw a sales revenue of RM493.5 million for this quarter, 22.0% lower y-o-y but up by 4% q-o-q.
It also saw a positive ebitda of RM21 million, a 320% increase q-o-q, as well as a total positive cash inflow from operations of RM17 million. These are areas of priority for the group, according to the release dated Dec 20.
Driving the group’s improved results were its ongoing operational, quality and cost optimisation efforts which helped offset the increase in raw material prices.
An uptick in sales volume, which led to increased utilisation and efficiencies, also had a positive effect on the bottom line, according to the group.
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The group says that it maintains a positive mid to long-term outlook on the glove industry, as gloves are an essential, single-use item in the healthcare, industrial and F&B sectors with no viable replacement.
“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,” states the release.
“We are pleased to have commenced the new financial year 2024 on a stronger note. 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”, says Lim Cheong Guan, managing director of Top Glove.
As at Nov 30, cash and cash equivalents stood at RM291.7 million.
As at 3.54pm, shares in Top Glove are trading RM0.03 lower, or 3.19% down at RM0.91 on the Bursa. On the SGX, shares in Top Glove are trading 1.5 cents lower or 5.4% down at 26.5 cents.
