KUALA LUMPUR, Malaysia—Top Glove has gone through what it described as "one of the most challenging times" for the industry, but it expects a return to normal within a year.
Earnings for fiscal year ended Aug. 31 fell 93 percent year-on-year to $2.1 billion (RMB 10 billion), on 66-percent lower sales of $3.5 billion, the Malaysian gloves maker reported in a Nov. 15 investor's presentation.
The severe decline, according to Top Glove, was mainly due to a 25-percent drop in volumes and a downtrend in the average selling prices (ASPs).
Commenting on the results, Executive Chairman Lim Wee Chai said Top Glove had to manage glove oversupply arising from new capacity, along with the effects of excess stockpiling by customers during the pandemic.
There was "no urgency" on the part of customers to place sizeable orders, he said, while some adopted a "wait and see" approach in anticipation of a further decline in ASPs.
Meanwhile, operating costs continued to escalate due to global supply chain disruptions, as well as increases in natural gas prices and the minimum wage in Malaysia.