KUALA LUMPUR: Glovemaker Hartalega Holdings Bhd recorded a 28% year-on-year growth in net profit in the fourth quarter ended March 31, 2020, but for the whole financial year (FY20), its earnings were still lower at RM434.78 mil compared with RM455.18 mil in the previous year.
Revenue for the year, however, increased to RM2.92 bil from RM2.83 bil previously, it said in a filing with Bursa Malaysia today.
On its 4Q performance, the company said net profit jumped to RM115.58 mil from RM90.33 mil a year earlier supported by higher revenue, lower raw material cost and reduced energy cost, coupled with ongoing cost optimisation measures.
In a statement, managing director Kuan Mun Leong said the Covid-19 pandemic continued to drive a crucial need for nitrile gloves across the globe.
“To this end, we have commissioned four out of 12 production lines of Plant 6 of our Next Generation Integrated Glove Manufacturing Complex (NGC). Construction of Plant 7 is also in the expansion pipeline.
“With the progressive commissioning of Plants 6 and 7, our annual installed capacity is set to increase to 43.7 billion pieces by FY22 from the current 38.1 billion pieces,” he added.
Kuan said the group had entered into a sale and purchase agreement with Bonus Essential Sdn Bhd to acquire land in Banting for RM263 mil in cash.
Totalling about 38.45ha, the land would serve as the future site of the group’s NGC 2.0 capacity expansion plans, he added.
“This acquisition will enable the group to progressively expand its capacity over the long run to further cater to rising global demand.
“With these plans in place, the group remains optimistic on long-term prospects as we continue to strive to meet the needs of the healthcare sector with our high-quality nitrile gloves,” added Kuan.
The company declared a third interim dividend of 2.05 sen per share for FY20, payable on June 26. – May 18, 2020, Bernama
