KUALA LUMPUR, Dec 9 — Top Glove Corporation Bhd saw another record-breaking performance in the first quarter of financial year 2021 ended November 30, 2020 (Q1 2021), with its net profit surging over 20 times to RM2.38 billion from RM111.43 million in Q1 2020.
Revenue also soared 293 per cent to a record high of RM4.76 billion from RM1.21 billion previously, attributed to the strong demand for gloves in both developing and emerging markets due to the ongoing Covid-19 global pandemic.
In a filing with Bursa Malaysia, Top Glove said the improved profit came on the back of higher sales output, high utilisation levels which amplified production efficiency, as well as higher average selling prices in line with market pricing.
“Moreover, ongoing technological advancements towards automation and digitalisation initiatives, effective talent development as well as continuous innovation, quality and productivity enhancements also contributed to the improved bottom line,” it said.
The company also declared its first single-tier interim dividend of 16.5 sen per share, payable on January 11, 2021, to reward its approximately 100,000 public shareholders.
As of November 30, 2020, the group is in a net cash position of RM3.45 billion.
Meanwhile, Top Glove said the group had earmarked RM10 billion for capital expenditure over the next five years, from FY21 to FY25, which will boost its capacity by an additional 100 billion pieces of gloves.
Top Glove remains hopeful of an effective vaccine to address the dire pandemic situation and is encouraged by reports of developments and progress made in recent days.
“However, even with a vaccine, gloves will still be needed for the testing and administering of the vaccine,” it said.
It added that pre-pandemic, the global glove demand was already growing by about 10 per cent, and this is expected to continue to grow steadily, driven by strong market fundamentals across all geographies.
“While demand will stabilise post-pandemic, it will not revert to pre-pandemic levels owing to increased hygiene awareness,” it said.
On its outlook, Top Glove estimates that glove demand would keep growing by 20 per cent per annum in 2020, 25 per cent per annum in 2021 and 15 per cent per annum post-pandemic.
“The steady increase in sales orders from loyal customers in 195 countries worldwide, alongside capacity building plans and technology-driven quality, productivity and efficiency improvements bode well for the group’s performance, going forward,” it added.