SHAH ALAM, Malaysia—Top Glove Corp. Bhd. has narrowed its loss in the third quarter of fiscal 2023, due mainly to improved average selling prices (ASPs) as well as its ongoing quality and optimization plans.
For the quarter ended May 31, the group registered revenue of $114 million, down 64 percent compared to the year before, Top Glove said June 16.
Loss after tax came in at $25.8 million, an improvement of 23 percent compared to a $33 million loss reported in the previous quarter.
The figure, however, was substantially lower than a profit of $6.2 million reported in the third quarter of 2022.
The group said it improved its "overall operating performance" amidst a challenging business landscape, due in part to a 6-percent increase in ASPs.
Furthermore, it linked the improvement to "quality and cost optimization initiatives to streamline operations."
The measures employed included "decommissioning obsolete production lines and temporarily stopping production at 17 out of its 49 factories," Top Glove said.
According to the glove maker, the decommissioning reduced the group's production capacity by 5 billion pieces, bringing its total production capacity to 95 billion pieces of gloves per year.
In addition, the group said it implemented a "manpower restructuring exercise," but it did not elaborate further.
The measures fall within Top Glove's six-point "comeback strategy," which involves boosting volumes, enhancing quality, consolidating facilities, enhancing "people productivity," strengthening cash flow and optimizing supply chain.