KUALA LUMPUR: Top Glove Corp Bhd's net profit surged to an all-time high of RM1.29 billion in the fourth quarter (Q4) ended August 31, 2020 from RM74.17 million in the same quarter a year ago.
Its revenue significantly increased to RM3.11 billion from RM1.19 billion.
Top Glove said the tremendous growth stemmed from a global surge in demand for gloves on the back of the Covid-19 pandemic.
It said the Q4 financial year 2020 demand growth was especially strong in Asia, Western Europe and Eastern Europe, rising by 110 per cent, 73 per cent and 64 per cent respectively compared with the Q4 2019.
Most robust was demand for nitrile gloves which grew 31 per cent year-on-year (Y-o-Y), while natural rubber examination gloves saw a growth of seven per cent versus the corresponding period in financial year 2019.
Reflecting market demand, average selling prices (ASPs) were also adjusted upwards, it said.
Top Glove executive chairman Tan Sri Dr Lim Wee Chai said the company was pleased to be able to deliver such strong results and "even more so, to be in a position to help protect and save lives in Malaysia and all over the world with our gloves, during this critical time."
Lim added that the unprecedented performance underlined the effectiveness of its ongoing technology-driven improvement initiatives, which focus on quality and cost efficiency, and which had enabled it to meet the increase in glove demand.
"We also credit our robust results to our 21,000 employees, who continued to do their best to ensure the uninterrupted production and delivery of gloves, despite many operational challenges during the lockdown and MCO (Movement Control Order)," he added.
Top Glove said further contributing to the phenomenal results was Aspion Sdn Bhd, which posted a pre-tax profit of RM139.9 million, as the group started to reap the fruits of its acquisition.
It said the additional capacity provided also helped position Top Glove to meet the upturn in glove demand.
For full-financial year 2020, Top Glove's net profit surged to RM1.87 billion from RM364.68 million, while revenue grew to RM7.24 billion from RM4.8 billion in 2019.
Top Glove said the healthy cash flow generated by the excellent performance enabled the group to lower borrowings, which led to a 33 per cent savings in terms of interest cost.
It said over the course of financial year 2020, the net cash flow generated from operating activities was RM3.17 billion compared with RM0.53 billion in 2019, an impressive increase of 500 per cent.
"This has considerably strengthened the group's financial position, which enabled the group to fully settle its syndicated loan of RM654 million during the year.
"In addition, a total of RM710 million or 87.2 per cent of its exchangeable bonds were converted into ordinary shares of the company," it said.
As at August 31 this year, the group was in a net cash position of RM2.34 billion.
This allowed the funding of ongoing organic capital expenditure, dividend payment, future merger and acquisitions as well as the acquisition of land bank for business expansion, it said.
//Top Glove posted massive Q4 net profit of RM1.29bil, full-year at RM1.87bil
NST Business
KUALA LUMPUR: Top Glove Corp Bhd's net profit surged to an all-time high of RM1.29 billion in the fourth quarter (Q4) ended August 31, 2020 from RM74.17 million in the same quarter a year ago.
Its revenue significantly increased to RM3.11 billion from RM1.19 billion.
Top Glove said the tremendous growth stemmed from a global surge in demand for gloves on the back of the Covid-19 pandemic.
It said the Q4 financial year 2020 demand growth was especially strong in Asia, Western Europe and Eastern Europe, rising by 110 per cent, 73 per cent and 64 per cent respectively compared with the Q4 2019.
Most robust was demand for nitrile gloves which grew 31 per cent year-on-year (Y-o-Y), while natural rubber examination gloves saw a growth of seven per cent versus the corresponding period in financial year 2019.
Reflecting market demand, average selling prices (ASPs) were also adjusted upwards, it said.
Top Glove executive chairman Tan Sri Dr Lim Wee Chai said the company was pleased to be able to deliver such strong results and "even more so, to be in a position to help protect and save lives in Malaysia and all over the world with our gloves, during this critical time."
Lim added that the unprecedented performance underlined the effectiveness of its ongoing technology-driven improvement initiatives, which focus on quality and cost efficiency, and which had enabled it to meet the increase in glove demand.
"We also credit our robust results to our 21,000 employees, who continued to do their best to ensure the uninterrupted production and delivery of gloves, despite many operational challenges during the lockdown and MCO (Movement Control Order)," he added.
Top Glove said further contributing to the phenomenal results was Aspion Sdn Bhd, which posted a pre-tax profit of RM139.9 million, as the group started to reap the fruits of its acquisition.
It said the additional capacity provided also helped position Top Glove to meet the upturn in glove demand.
For full-financial year 2020, Top Glove's net profit surged to RM1.87 billion from RM364.68 million, while revenue grew to RM7.24 billion from RM4.8 billion in 2019.
Top Glove said the healthy cash flow generated by the excellent performance enabled the group to lower borrowings, which led to a 33 per cent savings in terms of interest cost.
It said over the course of financial year 2020, the net cash flow generated from operating activities was RM3.17 billion compared with RM0.53 billion in 2019, an impressive increase of 500 per cent.
"This has considerably strengthened the group's financial position, which enabled the group to fully settle its syndicated loan of RM654 million during the year.
"In addition, a total of RM710 million or 87.2 per cent of its exchangeable bonds were converted into ordinary shares of the company," it said.
As at August 31 this year, the group was in a net cash position of RM2.34 billion.
This allowed the funding of ongoing organic capital expenditure, dividend payment, future merger and acquisitions as well as the acquisition of land bank for business expansion, it said.