Top Glove upbeat on robust growth in FY20

KUALA LUMPUR: Rubber glove manufacturer Top Glove Corporation Bhd is optimistic about maintaining its robust growth for the full 2020 financial year (FY20) backed by the strong first-quarter performance.

Executive chairman Tan Sri Dr Lim Wee Chai said the strong performance, which led to better profits, was attributed to better contributions from both the nitrile glove and natural rubber glove segments.

“In the quarter, sales volume was up 6.3% with a hike in demand from Africa which saw a surge of 46% this quarter compared with the previous quarter (fourth quarter of FY19),” he told reporters here on Dec 17.

He added that sales to other regions also recorded an increase in volume, including Western Europe (17%), Eastern Europe (2.2%), Japan (18.8%), Asia except Japan (5.2%) and North America (8.8%).

“In line with our continuous investment in automation over the years, we have seen strong growth in our manufacturing capacity,” he noted.

On the trade front, Lim said the company is confident that both the US and China will come to an agreement sooner or later on a trade dispute that has lasted for more than a year.

“We are positive that both countries will work something out and as of now, our business is operating as usual,” he added.

On the issue of foreign workers, Lim pointed out that following the suspension of new Bangladeshi intakes in September, the company has turned to Nepal, Myanmar and Indonesia.

“We did face a labour shortage but as of now, we are doing fine,” he added.

Lim also said that Top Glove’s Thailand operations contributed positively to its good performance while the group continued to see recovery in its China operations, which improved due to a better average selling price (ASP) for its vinyl gloves.

“In the coming years, we believe the demand for gloves will continue to be on the uptrend, with an estimated growth of 10%-12% yearly,” he added.

He said that despite the global economic challenges, the industry’s prospects remain promising.

“And to ensure we are well-positioned to tap the growing glove demand, the company will continue to prioritise research and development, innovation and Industry 4.0 initiatives.

“These will enable us to increase quality, operational efficiency and effectiveness while keeping our customers satisfied, which ultimately will allow us to deliver good results in the quarters to come,” Lim said. – Bernama

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