TOP Glove Corporation Bhd (Top Glove) said today it recorded new highs in revenue and profit for the fourth quarter of financial year ended August 31, 2020 (4QFY2020) and the full financial year 2020 (FY2020).
The tremendous growth is fuelled by a global surge in demand for gloves on the back of the Covid-19 pandemic.
With demand for gloves seen to increase further, the company expects to see fresh highs in financial year ending August 31, 2021.
For the full financial year 2020, sales revenue amounted to a new record of RM7.24 bil, up 51% from that of financial year ended August 31, 2019 (FY2019), while profit after tax also soared to RM1.9 bil, a spike of 417% from the previous financial year.
Sales volume also grew by 17% in the same financial year versus FY2019.
The world’s biggest glove manufacturer’s achievements for the fourth quarter of financial year ended August 31, 2020 (4QFY2020) were equally impressive.
Sales Revenue reached an exceptional RM3.11 bil, moving up 162% against the corresponding period in the last financial year and 84% versus the third quarter (3QFY2020).
Profit after tax came in at RM1.33 bil, which is 18 times more than the corresponding period in previous financial year (4Q2019).
Meanwhile, sales volume jumped 43% from 4QFY2019 and 5% from 3QFY2020.
To reward its 57,000 public shareholders following the Group’s remarkable performance, Top Glove’s board of directors has recommended a final dividend of 8.5 sen per share, amounting to a payout of approximately RM691.8 mil.
This brings the total FY2020 dividend payout to 11.8 sen per share, amounting to a total payout of approximately RM961.2 mil. The total dividend of 11.8 sen represents an increase of 9.3 sen or 373% over FY2019, which is a net profit payout ratio of 51%.
The Group’s improved profit was also attributed to productivity enhancements which it continued to embark on, while the Group’s utilisation levels which remained at close to 100% amplified production efficiency and reaped superior economies of scale.
High utilisation helped lower overheads significantly, notably the cost of labour and natural gas.
Further contributing to the phenomenal results was Aspion with a profit before tax of RM139.9 mil, as the Group started to reap the fruits of its acquisition.
The additional capacity provided also helped position Top Glove to meet the upturn in glove demand.
“We are very pleased to be able to deliver such strong results and even more so, to be in a position to help protect and save lives in Malaysia and all over the world with our gloves, during this critical time,” said Top Glove executive chairman Lim Wee Chai.
“Our unprecedented performance underlines the effectiveness of our ongoing technology-driven improvement initiatives, which focus on quality and cost efficiency, and which have enabled us to meet the increase in glove demand.
“We also credit our robust results to our 21,000 employees, who continued to do their best to ensure the uninterrupted production and delivery of gloves, despite many operational challenges during the lockdown/MCO (Movement Control Order)”, Lim added. – Sept 17, 2020
