PETALING JAYA: Top Glove Corporation Bhd returned to the black in the second quarter ended Feb 28, 2025 (Q2’25) with a net profit of RM30.28 million, compared to a net loss of RM51.19 million posted in the corresponding quarter last year, driven by improved margins.
The group recorded revenue of RM883.65 million, an increase of 61% from RM550.33 million posted in Q2’24, boosted by higher orders stemming from frontloading as US-based customers stocked up ahead of higher tariffs on China-made gloves.
Driving the group’s improved performance was a sustained uptrend in glove orders on the back of recovering global demand, as well as trade diversions resulting from US tariffs on Chinese glove exports, which spurred continued growth in sales revenue.
In addition, improved utilisation rates from increased orders over the past quarters enhanced cost optimisation. This, supported by ongoing quality enhancements, resulted in better production efficiency, contributing to strengthened profitability.
Raw material prices, which declined against Q1’25, also accounted for the enhanced performance in Q2’25, with natural rubber latex concentrate prices down 1% to an average of RM6.80/kg, while nitrile latex prices dropped 8% to US$0.86/kg (RM3.80/kg).
Top Glove managing director Lim Cheong Guan said the company’s increasingly robust results reflect the success of its ongoing quality and cost efficiency initiatives, reinforced competitiveness, and position to benefit from recovering glove demand and trade shifts in the market.
“This is 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 in a statement.
Top Glove remains optimistic on prospects, as continually improving market conditions drive sustained demand growth. With this, continued build-up in its order book is anticipated, fuelled by strong order inflows.
Moreover, trade rerouting stemming from US tariffs is expected to lead to higher utilisation rates and stronger average selling prices, with US orders projected to resume in the coming months when frontloaded stocks deplete.
At the same time, Top Glove remains vigilant in addressing competitive pressures, particularly in non-US markets such as Europe, where Chinese manufacturers’ aggressive nitrile glove pricing strategies may pose challenges.
However, this will be mitigated by the group’s diversified product portfolio, and its ability to switch between natural rubber and nitrile glove production lines, where required, Top Glove said.
With a product footprint in 195 countries worldwide, Top Glove’s risk is spread across different regions, particularly to the US, where margins are higher.
Lim said the improving glove industry dynamics present significant opportunities for Top Glove, and the company is well placed to benefit from them.
“We are mindful there may be challenges ahead and will continue to pursue quality and cost efficiency initiatives, towards ensuring we stay competitive. We also remain deeply committed to ESG principles, recognising that sustainable business practices are integral to long-term success. With these ongoing improvements, we are confident of sustaining our growth trajectory and delivering long-term value to our stakeholders,“ he added.
