Top Glove says on road to “steady recovery”

Shah Alam, Malaysia – Top Glove Corp. Bhd says it is on road to a “steady recovery” with first quarter results showing sequential improvements in sales and profits.

For the quarter ended 30 Nov 2023, Top Glove said it delivered a 4% quarter-on-quarter growth in sales to RM493 million (€97 million), while narrowing loss from operations by 39% sequentially to RM60 million.

Sales were, however, down 22% compared to the RM632 million reported for the same period last year.

Loss after tax improved 90% sequentially and 70% year-on-year to RM47 million, Top Glove reported 20 Dec.

Meanwhile, the Malaysian gloves maker recorded positive earnings (EBITDA) of RM21 million, an increase of 320% against the previous quarter. No year-on-year comparison was available for the measure.

Furthermore, the group's statement noted “growth” in sales volumes compared to the previous quarter, but did not provide details.

Driving the group’s improved results were its ongoing “operational, quality and cost optimisation efforts” which it said helped offset the increase in raw material prices.

Additionally, the uptick in sales volumes and consequent increased utilisation rates and efficiencies also had a positive effect on the bottom line.

“We are encouraged by the continual improvement in our results from quarter to quarter,” said Lim Cheong Guan, managing director of Top Glove.

Furthermore, a resumption in glove orders is “indicative of the market rebounding” said Lim, adding that Top Glove hoped to achieve “sustained recovery in the coming quarters.”

Looking ahead, the group maintains “a positive mid to long term outlook” on the glove industry.

Top Glove foresees global glove demand resuming growth of around 8% “in time to come”, as consumption picks up driven by customers’ replenishment of depleted stocks.

“Going forward, our focus will remain on bolstering our core glove business, through quality and cost enhancement initiatives,” Lim concluded.