KUALA LUMPUR, Malaysia—Malaysian gloves manufacturer Supermax Corp. expects the gloves market to remain weak in the near future amid oversupply and an easing of demand to pre-pandemic era levels.
The manufacturer reported a 97-percent year-on-year decline in fourth quarter profit after tax at about $7.03 million, on 84-percent lower sales of $65.9 million.
For the 12 months to end of June, the company posted profit after tax of 169 million, 80 percent lower than the $879 million reported the year before but higher than $117 million in 2020.
Sales revenue for the year dropped 62 percent year-on-year to $593 million, but came in 28-percent higher than the $461 million reported in 2020.
"This performance may have appeared lower than FYE2021 but is overall higher compared to FYE2020," said Supermax.
Supermax linked the decline in results to a continued oversupply, which exceeds demand and weak glove selling prices.