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KUALA LUMPUR: Malaysia’s Top Glove Corp posted a record profit for the fourth consecutive quarter in the December-February period, as continued demand for gloves drove sales globally, the company said on Tuesday (March 9).
Net profit soared 2.380 percent to RM2.87 billion (US $ 695.93 million) in the second quarter of the financial year from RM115.7 million a year ago, it said in a statement to the Malaysian stock exchange.
The company said that earnings made during the first half of the current financial year ending in August 2021 exceeded the group’s total earnings for the past 20 years.
The world’s largest medical glove maker has benefited from growing demand for its medical gloves and protective gear during the COVID-19 pandemic, but a U.S. import ban continues to overshadow its stellar performance.
The company said higher production efficiency and higher average selling prices had boosted second-quarter earnings and it expected demand to grow even as vaccination is rolled out.
READ: From record sales to government investigation, 2020 an eventful year for Malaysia’s Top Glove
“While demand is likely to stabilize after the pandemic, the Group hopes that it will not return to pre-pandemic levels due to increased hygiene awareness, as well as uncertainties surrounding the resolution of the pandemic in COVID-19, “the company said.
Top Glove also posted record revenue of RM5.37 billion in the second quarter, 336% more than a year ago.
Global demand for gloves is likely to grow to about 15 percent annually after the pandemic from about 10 percent annually before the coronavirus, Top Glove said, adding that it expects governments to continue stockpiling gloves and other personal protective equipment.
The manufacturer, which seeks a dual primary listing of $ 1.9 billion in Hong Kong, said a portion of the net proceeds raised will be invested in environmental, social and corporate governance practices and initiatives.
READ: Malaysia’s Top Glove posts record quarterly gains on pandemic demand
Last July, U.S. Customs and Border Protection banned imports from Top Glove subsidiaries over forced labor allegations.
Sources told Reuters that two banks, Citigroup and UBS Group AG, have chosen not to participate in the listing deal, citing concerns about the manufacturer’s rubber growing processes and the reputational risk of working with a state-sanctioned company. United.
