KUALA LUMPUR: Hartalega Holdings Bhd, a nitrile glove manufacturer, registered a 5.9 per cent jump in net profit to RM119.76 million in the third quarter (Q3) ended December 31, 2018 from RM113.02 million recorded in the same quarter last year.
In a filing to Bursa Malaysia, Hartalega said the higher sales revenue was attributed to stronger demand for nitrile gloves and higher average selling price coupled with growth in sales volume of 9.6 per cent.
Its revenue in Q3 increased 19.9 per cent to RM723.39 million from RM603.14 million.
As a result of the improved performance, the board declared a second interim dividend of 2.2 sen per share single tier for its financial year ending March 31, 2019.
The dividend will be paid on March 28.
For the nine-month period, Hartalega’s net profit increased 13 per cent to RM364.88 million from RM322.75 million recorded in the same period a year ago, while revenue increased 19.9 per cent to RM2.14 billion from RM1.79 billion.
Hartalega managing directore Kuan Mun Leong said it expected the challenging business environment to persist, given heightening competition and cost increases such as the minimum wage hike, higher natural gas tariff and additional costs associated with social compliance.
“We remain optimistic on the long-term prospects for the group. The first four plants of our Next Generation Integrated Glove Manufacturing Complex are fully operational and we have commissioned six out of 12 lines for Plant 5, with the remaining lines set to come onstream progressively,” Kuan said in a statement.
Construction of Plant 6 was on track and construction of Plant 7 was scheduled to commence in May, he added.
“The group’s efficiency will continue to improve as we embark on building new plants, which we believe will better position us against the competitive landscape. At the same time, our expansion plan is cognisant of maintaining a healthy balance in supply and demand,” he said.
Following the launch of its latest innovation, the world-first antimicrobial glove, Hartalega has received orders from clientele in 10 countries to date.
“We expect to continue gaining momentum and see strengthening market share as market acceptance increases,” Kuan said.