PETALING JAYA: Top Glove Corporation Bhd yesterday announced its financial results for the first quarter ended Nov 30, 2023 (Q1’24), as it gathers momentum in its journey to recovery.
Despite persistent challenges in the operating landscape, Top Glove delivered a commendable performance in Q1’24, attaining sales revenue of RM493 million, an increase of 4% quarter on quarter, while loss from operations continued to narrow by 39% to RM60 million compared with the previous quarter.
The group saw an improvement in Q1’24, with a loss after tax of RM47 million, representing a 90% reduction from its Q4’23 loss after tax, which included a one-off impairment of RM392 million.
Meanwhile, Top Glove recorded positive ebitda of RM21 million, an increase of 320% against the previous quarter and total positive cash inflow from operations of RM17 million, which are areas of priority for the group. Sales volume also showed growth versus Q4’23.
Driving the group’s improved results were its ongoing operational, quality and cost optimisation efforts which helped offset the increase in raw material prices. Additionally, the uptick in sales volume which led to increased utilisation and efficiencies, also had a positive effect on the bottom line.
Top Glove managing director Lim Cheong Guan remarked, “We are encouraged by the continual improvement in our results from quarter to quarter. This is testament to the effectiveness of our ongoing quality and cost optimisation, and operations enhancement measures outlined in the Top Glove Turnaround Plan. With glove orders resuming, we believe this is also indicative of the market rebounding, and we are hopeful of making a sustained recovery in the coming quarters.”
As Top Glove progresses on the road to recovery, it continues to focus on ESG. The group earned the EcoVadis Sustainability Bronze Medal, having secured its placement in the upper segment amongst all evaluated companies and industries in 2023.
The group is also working closely with stakeholders to ensure it meets new obligations under the European Union Deforestation Regulation (EUDR), which will apply starting Dec 30, 2024.
Under this regulation, companies trading in commodities such as natural rubber and products derived from natural rubber, are required to conduct due diligence on their supply chain to ensure the goods do not result from recent deforestation, forest degradation or breaches of local environmental and social laws.
Looking ahead, the group maintains a positive mid to long term outlook on the glove industry, as gloves are an essential, single use item in the healthcare, industrial and F&B sectors with no viable replacement.
Top Glove is also optimistic that global glove demand growth of approximately 8% will resume in time to come, along with glove consumption; driven by customers’ replenishment of depleting glove stockpiles as well as robust industry fundamentals, and further spurred by increased health and hygiene awareness post pandemic.
“We are pleased to have commenced the new financial year 2024 on a stronger note. Going forward, our focus will remain on bolstering our core glove business, through quality and cost enhancement initiatives, so we are well positioned to maintain the upswing in our performance and expedite our recovery,” said Lim.