TOP Glove Corp Bhd has posted a net profit of RM2.9 bil for its 2Q FY2021 ended Feb 28, 2021 or close to 24 times higher than the corresponding period in FY2020 (2Q FY2020: RM116.01 mil).
During the period under review, the world’s largest glove maker achieved its highest ever quarterly sales revenue of RM5.37 bil or an increase of 336% from 2Q FY2020 and 13% quarter-on-quarter (qoq).
For the 1H FY2021 period, Top Glove saw its net profit climbing 2,220% or 22 times to RM5.29 bil.(1H FY2020: RM227.77 mil) while its sales revenue amounted to RM10.12 billion or a jump of 315% from a year ago (1H FY2020: RM2.44 bil).
As of end-February this year, the group was in a net cash position of RM4.06 bil.
In line with its commitment to create value for its approximately 120,000 public shareholders, Top Glove said it will commence payment of special dividends in 2Q FY2021 which the Board has committed to paying from 2Q FY2021 to 4Q FY2021.
The dividend payment comprises a special dividend pay-out of 20% plus 50% as per the company’s dividend policy or a total of 70% dividend pay-out that amounts to 25.2 sen per share.
The total dividend declared for 1H FY2021 of 41.7 sen/share or a 253% jump from the full year dividend of 11.8 sen/share for FY2020.
The ex-date for the dividend is March 23 while the payment date is April 6 April 2021.
Top Glove attributed the group’s strong and healthy sales figures to the continued demand for gloves globally while the improved profit came on the back of higher sales output and high utilisation levels which amplified production efficiency, coupled with higher average selling prices (ASPs) in line with market pricing.
“The group’s remarkable and healthy profit was also attributed to ongoing enhancements across its operations through digital transformation, continuous research & development (R&D) and innovation, quality and productivity initiatives and talent acquisition and development,” Top Glove pointed out in a media release.
Moving forward, Top Glove expects global glove demand to grow from a pre-pandemic level of about 10% annually to about 15% annually post-pandemic following an increase in usage coupled with heightened hygiene awareness.
“To ensure it remains well-positioned to meet the continued strong global glove demand, the group will continue to pursue organic expansion, inorganic expansion and strategic investments,” noted the glove maker.
“To this end, the group has earmarked RM10 bil for capex over the next five years from FY2021 to FY2025 which will increase its current production capacity by about 100 billion pieces of gloves to a total production capacity of over 200 billion pieces of gloves.”
At 3.20pm, Top Glove was up 14 sen or 2.78% at RM5.18 with 28.38 million shares traded, thus valuing the company at RM41.55 bil – March 9, 2021
Photo credit: CGTN