[SINGAPORE] Malaysian glove maker Top Glove on Thursday (Jun 26) posted a net profit of RM34.7 million (S$10.5 million) for its third quarter ended May, 31 per cent down from a profit of RM50.7 million in the previous corresponding period.
This translated to a lower earnings per share of 0.43 sen, down from 0.63 sen in Q3 of FY2024.
The decline in its bottom line came despite the group recording top-line growth for the period, with revenue up 30 per cent at RM830.3 million, from RM636.9 million in the year-ago period.
Q3’s higher revenue was driven by a 45 per cent year-on-year rise in sales volume, Top Glove said. The quarter’s profit after tax and minority interest stood at RM35 million, moderating 31 per cent from RM51 million in Q3 FY2024. The group attributed this fall to increased competition and the weakening of the greenback against the ringgit.
Operating expenses for Q3 rose to RM821.9 million from RM671 million in the year-ago quarter, and finance costs went up to RM9.6 million from RM1.8 million.
The quarter’s earnings before interest, taxes, depreciation and amortisation fell 10 per cent on the year to RM117 million from RM130 million.
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For the first nine months of FY2025, Top Glove posted sales revenue of RM2.6 billion, a 55 per cent increase on the year, boosted by a 65 per cent growth in sales volume.
Lim Cheong Guan, managing director of Top Glove, said: “Our Q3 FY2025 performance was impacted by pronounced headwinds, chiefly lower average selling prices, heightened competition, coupled with cost savings pass-through.”
Despite the headwinds, he maintained that the long-term outlook remains “promising” as gloves are an essential item in multiple sectors, with global demand expected to be sustained.
While evolving tariff actions and trade dynamics could limit near-term visibility, Top Glove said that it is “well-placed” to mitigate supply-chain risks and country-specific export risks because its customer base spans 195 countries. It has manufacturing facilities in Malaysia, Thailand and Vietnam.
Top Glove has a primary listing on the mainboard of the Bursa Malaysia Stock Exchange and a secondary listing on the mainboard of Singapore Exchange.
Shares of Top Glove ended Wednesday 2.2 per cent or S$0.005 lower at S$0.225.
