TOP Glove Corp Bhd has dished out yet another commendable set of results with a net profit of RM2.06 bil for its 3Q FY8/2021 which was 490% higher than the same period a year ago (3Q FY2020: RM350.03 mil).
Nevertheless, the company’s net profit eased 29% quarter-on-quarter (qoq) (2Q FY8/2021: RM2.9 bil) on the back of adjustments in line with glove market pricing trends to average selling prices (ASPs) which had peaked in February 2021.
Likewise, although the company’s revenue during the quarter under review rose 147% to RM4.16 bil from RM1.69 bil a year ago, its qoq revenue was 22% softer (2Q FY8/2021: RM5.36 bil).
“The sales volume (quantity sold) eased 4% qoq mainly due to reduction in sales to the US following a temporary halt in shipments to the US from Malaysia in compliance with requirements of the US Customs and Border Protection (CBP),” Top Glove pointed out in a statement accompanying its 3Q FY8/2021 results.
“Nonetheless, global glove demand remains resilient as glove usage continues to rise, driven by the ongoing pandemic.”
For the nine-month period, however, the world’s largest glove maker saw its next profit spiraled 11.7 times to RM7.35 bil year-on-year (yoy) (9M FY2020: RM577.8 mil) while its revenue stood at RM14.29 bil, up 246% yoy (9M FY2020: RM4.13 bil).
All-in-all, the group’s net cash position as of end-May remained strong at RM4.23 bil.
A dividend amounting to 18 sen/share per share has been declared comprising a single tier third interim dividend of 12.7/share and s special single tier third interim dividend of 5.30 sen/share.
The ex-date for the dividend is June 23 while the payment date is July 7. This brings the total payout for 9MY2021 to 59.7 sen/share or 406% increase from the full year dividend for FY2020 (at 11.8 sen/share).
“For the past 20 years since our listing on Bursa Malaysia, we have successfully delivered a CAGR (compound annual growth rate) of 28% for revenue and 38% for profit,” commented Top Glove’s managing director Datuk Lee Kim Meow.
“This is surely a glowing testament of the glove industry’s strong fundamentals and its promising long-term potential as well as our robust ESG practices.
“As we continue to work harder, smarter and faster, we also believe we will be well positioned to conclude our financial year 2021 on a healthy and positive note, and continue creating value for all our stakeholders”.
At the close of this morning’s trading session, Top Glove was up 1 sen or 0.21% to RM4.79 with 10.12 million shares traded, thus valuing the company at RM38.34 bil. – June 9, 2021
