KUALA LUMPUR, Malaysia—Despite suffering a recorded loss of more than $36 million in the first quarter of its 2023 financial year, Top Glove Corp. Bhd. Remains optimistic about long-term prospects for its markets.
The Malaysian gloves maker's net loss in the quarter ending Nov. 30 is down from a net profit of $47 million reported for the same period of 2021.
Group sales fell 61 percent year-on-year to $146 million during the three-month period, due mainly to a 48-percent decline in sales volumes, the company reported.
In a Dec. 14 news release, the group linked the softer financial performance to "the ongoing glove supply/demand imbalance."
The company said customers have held off on restocking activity as they continued to deplete existing glove inventories, hitting demand with a "lack of urgency" to place orders due to excess production capacity within the gloves industry.
Top Glove noted, however, that the decline in average selling prices "is slowing down."