KUALA LUMPUR, March 20 — Top Glove Corporation Bhd has returned to the black with a net profit of RM30.28 million in the second quarter (2Q) ended Feb 28, 2025, compared with a net loss of RM51.20 million in the same period a year ago.
Revenue for the quarter under review rose to RM883.65 million from RM550.33 million previously, mainly driven by the group’s improved performance due to sustained uptrend in glove orders on the back of recovering global demand.
“The trade diversions resulting from the United States (US) tariffs on Chinese glove exports also spurred continued growth in sales revenue, as sales volume grew by 58 per cent against the corresponding quarter in fiscal 2024,” it said in a filing with Bursa Malaysia today.
Top Glove said the ongoing quality improvement, along with higher utilisation rates from increased orders, resulted in better production and cost efficiency, contributing to enhanced profitability.
Meanwhile, the company successfully issued a five-year senior Sukuk Wakalah with a nominal value of RM800 million on Feb 20, 2025.
It noted that the proceeds of RM800 million raised, along with RM380 million of the group’s cash, was used to redeem its outstanding perpetual sukuk amounting to RM1.18 billion on its first call date on Feb 27, 2025.
“The issuance of the senior Sukuk Wakalah and redemption of Perpetual Sukuk will reduce the overall financing costs, while the group’s net gearing stands at a healthy 0.13 times,” said Top Glove.
On prospects, Top Glove remains optimistic as improving market conditions continue to drive sustained demand growth. With this, continued build-up in its order book is anticipated, driven by strong order inflows.
The group also remains vigilant in addressing competitive pressures, particularly in non-US markets such as Europe, where aggressive nitrile glove pricing strategies by manufacturers from China may present challenges.
In a separate statement, Top Glove managing director Lim Cheong Guan said the robust results reflect the success of the group’s ongoing quality and cost efficiency initiatives.
He said this have reinforced competitiveness and positioned the group to benefit from recovering glove demand, as well as trade shifts in the market.
"We are pleased to continue delivering an improved performance with strengthened profitability. This is a testament to the commitment and relentless efforts of our team, which have been instrumental in turning the business around.
“We will continue to build on this momentum as we drive sustainable growth for the future,” he said. — Bernama
