SHAH ALAM, Malaysia—Rubber gloves manufacturer Top Glove has seen its financial results soar over the past year, with the outlook for the industry "very promising" in the short-term.
Profit after tax grew 417 percent year-on-year to $458 million for the financial year ended Aug. 31, Top Glove said in its annual financial report issued Sept. 17.
Sales increased 51 percent to $1.74 billion and sales volume rose by 17 percent over the 12-month period.
Top Glove linked the "tremendous growth" to a global surge in demand for gloves following the outbreak of COVID-19, with especially strong demand in Asia, Western Europe and Eastern Europe in the final quarter of the year.
Most robust was demand for nitrile gloves which grew by 31 percent year-on-year, while natural rubber examination gloves also saw a growth of 7 percent compared to last year.
Sales also were positively impacted by higher average selling prices (ASPs), which reflected market demand, Top Glove said.
The Malaysian group also attributed the improved profit to productivity enhancements and 100 percent utilization rates.
In addition, recently acquired gloves maker Aspion helped push profit before tax by $33.86 million, as the added capacity helped Top Glove meet the imcrease in demand.
"Our unprecedented performance underlines the effectiveness of our ongoing technology-driven improvement initiatives, which focus on quality and cost efficiency," said Lim Wee Chai, executive chairman of Top Glove.
Over the coming months, Top Glove expects the outlook for the group and glove industry to remain "very promising."
With COVID-19 still going strong, Top Glove estimates that demand for gloves will grow by 20 percent annually in 2020, 25 percent in 2021 and 15 percent post-COVID.
The group's monthly order book has seen a significant rise of about 150 percent from pre-COVID days while lead time has gone up from about 40 days to as much as about 400 days presently.
"The exceptionally strong demand coupled with higher ASPs bodes well for the group's results in the coming quarters," Top Glove concluded.