KUALA LUMPUR, Oct 6 ― Top Glove Corporation Bhd posted a net loss of RM926.64 million in the financial year ended August 31, 2023 (FY2023) compared with a net profit of RM225.56 million a year ago, dragged by an impairment amounting to RM389 million.

The one-off impairment comprises goodwill of RM138 million and a write-off of property, plant and equipment of RM251 million.

However, Top Glove emphasised that the impairment does not impact its cash flow.

Revenue decreased sharply by 59 per cent to RM2.26 billion from RM5.57 billion previously, the company said in a filing to Bursa Malaysia today.

In the fourth quarter of FY2023 (4Q FY2023), Top Glove said net loss widened to RM463.15 million from RM62.99 million in the same quarter last year while revenue fell to RM475.87 million from RM989.94 million previously.

Top Glove said without the said impairment, the group’s loss after tax in 4Q would be lower.

"The impairment was recognised following the operational rationalisation exercise and a review of the group’s income-generating assets to strengthen its cost competitiveness,” it said.

Meanwhile, it said the group’s 4Q earnings before interest, taxes, depreciation, amortisation (EBITDA) and operating cash flow were positive, as the glove industry progresses towards recovery from a protracted period of demand-supply imbalance.

In a separate statement, managing director Lim Cheong Guan said looking ahead, the group believes that inventory build-up from the pandemic is very close to bottoming out following lower glove demand over the past two years.

"Conversely, glove consumption has increased post-pandemic on the back of elevated levels of hygiene and health awareness.

"With this, we believe that glove demand will pick up gradually,” he said. ― Bernama