In addition, operating costs, including utilities, manpower and chemical costs, grew while competition intensified as new glove supplies led to pricing pressure.
Notably, the group said its second quarter results "still surpass" pre-pandemic financial performance.
"The group," it added, "has anticipated this adjustment and is well prepared for a more challenging period ahead as it transitions towards an 'old normal' scenario."
Quarter on quarter, Top Glove said sales volume showed "a marked improvement," following the resumption of regular glove restocking activity by customers.
Moreover, the group said its sales to the U.S. are "well on the path to recovery since September 2021," when a ban on Top Glove products was lifted.
Since September last year, the group said it had increased sales volume to the U.S. market by 220 percent.
Sales to the U.S. currently contribute 13 percent of total group revenue, up from 4 percent in September 2021.
"While our second quarter results are not as robust as we would like them to be, this is to be expected as the pandemic recedes," said Managing Director Dato' Lee Kim Meow.
"What is important for us now is to continue to focus on quality and efficiency, improve, innovate and invest in R&D," he added.
In light of the current supply situation, the group said it would "remain cautious and scale back on its expansion plans for the interim.
"The business environment is anticipated to be challenging and competitive in the immediate term, as the pandemic gradually comes under control," Top Glove said.
Top Glove also predicted that the additional glove supply and ensuing pricing/margin pressure may result in industry consolidation.
"Glove demand will still continue to grow steadily, albeit not at the accelerated but unsustainable pace during the pandemic.
"This challenging period is temporary, and we will continue to focus on maintaining our strong foundation," it added.
