Top Glove doubles sales orders ahead of “very robust” H2

Shah Alam, Malaysia – Top Glove Corp. Bhd has seen its sales order books for rubber gloves double over the recent months, due mainly to the global outbreak of Covid-19.

At the initial stage of the outbreak, sales orders came mainly from China, Hong Kong, Singapore and South Korea, the Malaysian gloves maker said in a 19 March quarterly results. 

In recent weeks, the group said it had received strong sales orders from Europe, US and other countries, following the rapid spread of coronavirus to other continents.

For the three months to end of February, Top Glove reported an 8.7% year-on-year increase in profit after tax to RM116 million (€24 million) on 6% higher sales of RM1.23 billion.

Going forward, the group said it expected “very solid quarters ahead”, having already secured "exceptionally large sales orders" for the next few months on the back of the Covid-19 outbreak.

Moreover, several other factors, including the recent plunge in oil prices, are expected to push Top Glove’s results up for the second half of financial year 2020, which ends 31 Aug. 

Top Glove said it will continue to expand its operations in line with the growing glove demand globally, particularly in view of the ongoing Covid-19 crisis. 

Currently operating 34 factories, the group aims to open three new plants in 2020 with 70 production lines and an overall capacity of 8.2 billion pieces per year. 

This will bring Top Glove’s total output to over 81 billion pieces a year by the end of 2020.

In 2021, the glove maker is planning to expand two of the currently under-construction plants and add two more factories with an overall capacity to manufacture 9.5 billion pieces across 80 production lines.

By the end of 2021, Top Glove expects to operate a total of 39 factories with an output of 91.1 billion pieces a year.

The Malaysian group is also looking to increase the current utilisation rate of 90% to close to 100%.