Top Glove on road to 'steady recovery'

SHAH ALAM, Malaysia—Top Glove Corp. Bhd. says it is on road to a "steady recovery" with first-quarter results showing sequential improvements in sales and profits.

For the quarter ended Nov. 30, 2023, Top Glove said it delivered a 4-percent quarter-on-quarter growth in sales to about $104 million (RM 493 million), while narrowing loss from operations by 39 percent sequentially to $12.7 million.

Sales were, however, down 22 percent compared to the $138.5 million reported for the same period last year.

Loss after tax improved 90 percent sequentially and 70 percent year-on-year to $10 million, Top Glove reported Dec. 20.

Meanwhile, the Malaysian gloves maker recorded positive earnings (EBITDA) of $4.4 million, an increase of 320 percent against the previous quarter. No year-on-year comparison was available for the measure.

Furthermore, the group noted "growth" in sales volumes compared to the previous quarter, but did not provide details.

Driving the group's improved results were its ongoing "operational, quality and cost optimization efforts" which it said helped offset the increase in raw material prices.

Additionally, the uptick in sales volumes and consequent increased utilization rates and efficiencies also had a positive effect on the bottom line.

"We are encouraged by the continual improvement in our results from quarter to quarter," said Lim Cheong Guan, managing director of Top Glove. He said a resumption in glove orders "indicative of the market rebounding," adding that Top Glove hoped to achieve "sustained recovery in the coming quarters."

Looking ahead, the group maintains "a positive mid to long term outlook" on the glove industry.

Top Glove foresees global glove demand resuming growth of around 8 percent "in time to come," as consumption picks up driven by customers' replenishment of depleted stocks.

"Going forward, our focus will remain on bolstering our core glove business, through quality and cost enhancement initiatives," Lim concluded.