KUALA LUMPUR: Hartalega Holdings Bhd has returned to profitability with a net profit of RM29 million in the second quarter ended Sept 30 2023.
Group revenue stood at RM452 million, down from RM585 million in the same quarter last year due to lower sales volume and average selling prices (ASP).
For the six months period, Hartalega recorded a net loss of RM24.77 million compared to a net profit of RM116.62 million in the previous comparative period.
Its revenue shrank to RM892.12 million from RM1.43 billion as sales volumes and ASP narrowed.
Hartalega chief executive officer Kuam Mun Leong said the oversupply in the glove market had been alleviated to a certain degree amid capacity rationalisation across key domestic manufacturers and the exit of some smaller players.
"However, recent capacity rationalisation across key domestic manufacturers as well as the exit of some smaller players in the sector have alleviated a certain degree of oversupply pressure in the market," he said.
Amid this tough environment, Kuan said the group is focused on its five-year strategic plan to weather through the current challenges and strengthen its sustainability and resilience for the longer term.
"Our ongoing operational rationalisation exercise is a key initiative under this plan, which entails the decommissioning of our Bestari Jaya facility to consolidate operations at our state-of-the-art Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang.
"This is expected to generate improved operational and cost efficiencies once completed by the first quarter of calendar year 2024, positioning the group for future market recovery," he added.