25 Mar 2025
Gloves market uptrend continues as orders increase amid recovery in global demand
Shah Alam, Malaysia – Top Glove Corp. has posted a strong performance for the second quarter of its fiscal year 2025, which started 1 Sept 2024.
Over the three months to end of February, the Malaysian gloves manufacturer strengthened profitability, driven by improved margins.
Sales were up 61% year-on-year at RM884 million (€185 million) while earnings (profit after tax) reached RM41 million, 203% above the prior-year level.
Volumes came in 58% higher compared to the same period in 2024, Top Glove's quarterly report issued 20 March also shows.
The positive results follow an "exceptional” first quarter, in which orders surged on “frontloading as US-based customers stocked up ahead of higher tariffs on Chinese-made gloves.”
Top Glove linked the latest gains to “a sustained uptrend in glove orders on the back of recovering global demand” as well as the trade-war factor.
Despite softer second-quarter volumes, Top Glove said it achieved 'good' profit margins, supported by cost pass-through effects, as well as better pricing in certain regions.
In addition, improved utilisation rates from increased orders over previous quarters enhanced cost-optimisation, the manufacturer noted.
Raw material prices, which declined against the first quarter, also contributed to the enhanced profitability.
Top Glove noted an average 1% decline in natural rubber latex concentrate prices to RM6.80/kg during the quarter as well as an 8% drop in nitrile latex prices to $0.86/kg.
Top Glove’s ongoing quality and cost efficiency initiatives have reinforced competitiveness of the group, stated managing director Lim Cheong Guan.
The improved competitiveness, he said, has positioned the group to benefit from the recovering glove demand as well as trade shifts in the market.
Looking ahead, Top Glove said it remained optimistic about future prospects as “continually improving market conditions drive sustained demand growth.”
Moreover, trade re-routing stemming from US tariffs is expected to lead to higher utilisation rates and stronger average selling prices.
US orders, said Top Glove, are projected to resume in the coming months when frontloaded stocks deplete.
Top Glove remains “vigilant” in addressing competitive pressures in other markets such as Europe, including aggressive nitrile glove pricing by Chinese manufacturers.
“The improving glove industry dynamics present significant opportunities for us, and we are well placed to benefit from them,” concluded Lim.
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