business

Hartalega's Q2 profits leapt 60pc to RM113m on higher glove sales

KUALA LUMPUR: Hartalega Holdings Bhd's second quarter profits ended September 2017 rose 60 per cent to RM113.34 million from RM71.22 million previously, thanks to higher medical glove sales and foreign exchange gains.

In its filing to Bursa Malaysia today, Hartalega said it booked in RM7.8 million in foreign exchange gain compared with a previous RM4.4 million net foreign exchange loss.

Its second quarter revenue also jumped 34 per cent to RM584.62 million, from RM436.98 million a year ago.

In a statement, Hartalega managing director Kuan Mun Leong said performance was driven by the group's continuous expansion at the Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang, Selangor.

“Increased sales volume and higher average selling prices, coupled with rising demand and the US dollar strengthening, further contributed to our good results," he said.

“Most importantly, our dedicated employees, also known as Hartanians, work hard to deliver this outstanding performance,” he said.

“With the NGC underpinning our growth for the coming years and greater productivity, we are well-prepared to meet the growing global demand for high quality nitrile gloves.

“Our remaining NGC Plants are being commissioned and we are confident we will be able to deliver sustained growth,” he said.

Hartalega shares closed up 24 sen or 3.1 per cent to an all time high of RM8 at 5pm today. Year to date, its shares have appreciated by 68 per cent from its closing price of RM4.77 at the end of 2016.

With a market capitalisation of RM13.2 billion, Hartalega continues its lead as the world's most valuable medical glove maker.

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