Top Glove delivers highest volume growth since Covid

Shah Alam, Malaysia – Top Glove is positioned for profitability as the gloves manufacturing industry continues to recover from a post-Covid decline.

The Malaysian group reported a 91% year-on-year increase in fourth quarter volumes for the three months ended 30 Sept – its highest volume growth since the peak of Covid pandemic in 2021.

For the full fiscal year, the gloves maker posted 19% year-on-year growth in volumes, enhancing profitability with higher utilisation rates and cost efficiencies, Top Glove reported 10 Oct.

Sales for the fourth quarter were up 75% year-on-year at RM835 million (€179 million), while profit after tax reached RM8 million, a 102% increase compared to the same period last year.

For the full year, sales were up 11% year-on-year at RM2.52 billion, while Top Glove narrowed loss after tax by 98% to RM18 million, helped by gains from land disposal.

Meanwhile, the group’s full year earnings (EBITDA) turned positive at RM251 million, recording an improvement of 261% compared with fiscal year 2023.

Top Glove attributed its improved performance to increased volumes as customers continued to replenish glove inventories.

The Malaysian supplier saw especially strong growth in the US, where volumes soared 120% quarter-on-quarter.

Top Glove linked the growth in the US to a high number of foreign manufacturers’ gloves being placed on the US FDA’s import alert list.

With the impending imposition of high tariffs by the US on Chinese medical gloves, Top Glove said it anticipated a greater increase in volumes in the quarters to come.

The group also noted that its 'bottom-line' for the final quarter of the year was affected by a “sudden drastic weakening” of the US Dollar against the Ringgit.

In response, Top Glove has revised its selling prices upwards, the effects of which will be realised from November onwards due to the time lag.

Raw material prices were mixed quarter-on-quarter, with average natural latex concentrate prices trending downward by 1% to RM6.61/kg, while average nitrile latex prices rose 8% to $0.96/kg.

The higher volumes and positive earnings development are “strong indicators of market resurgence and we are well positioned to ride the recovery wave,” said Lim Cheong Guan, managing director.

The “consistent progress”, added the MD, has been driven by ongoing improvement initiatives.