Saturday, October 16, 2021

Malaysia’s Top Gloves quarterly earnings fell 48 percent on slowing sales

Kuala Lumpur-Malaysia-based Top Glove Corp Bhd on Friday reported a 48 per cent decline in its fourth-quarter earnings as the steady rollout of vaccines across the globe dented demand for the glove.

The world’s largest medical glove maker reported a net profit of 607.9 million ringgit ($145.88 million) during June-August, compared to 1.17 billion ringgit a year ago, behind analysts’ 8.69 billion ringgit estimate in a Refinitiv poll .

Stock exchange filings show revenue fell 32 percent to 2.11 billion ringgit.

“[The quarterly] Results were soft as demand normalized after a massive vaccine rollout, which reduced sales volumes and [prices], which was not matched by the corresponding reduction in raw material prices,” the manufacturer said in a statement.

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Previous restrictions on imports into the United States also hurt sales during this period. But the year-long ban on Top Glove for alleged forced labor abuse was lifted last week.

Top Glove had a reputation hit by the ban, which came at a time when it was making record profits as the COVID-19 pandemic fueled demand for its gloves.

The company said on Friday that lifting the ban is expected to boost sales from its Malaysia operations in the United States, which accounts for 15 percent of the group’s total sales, but sees a challenging and competitive business environment.

by Liz Lee

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This News Originally From – The Epoch Times

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