SHAH ALAM: Top Glove Corporation Bhd announced its financial results for the fourth quarter (Q4’24) and full financial year 2024 (FY24) ended Aug 31, 2024, achieving its strongest sales volume (glove sales quantity) growth since the peak of the pandemic in 2021, as it maintains an upward trend towards profitability.
For Q4’24, the group posted sales revenue of RM835 million, representing a 75% increase from Q4’23, and charted profit after tax of RM8 million, which is a substantial improvement of 102% year on year, supported by enhanced operational efficiency as well as land disposal gains. Sales volume also saw exceptional growth of 91% versus Q4’23.
For FY24, the group registered sales revenue of RM2.52 billion, an uptick of 11% from FY23.
Loss after tax which factored in gains from land disposal, reduced considerably to RM18 million, a commendable upsurge of 98% against FY23. Meanwhile, the group’s full year ebitda turned positive at RM251 million, recording an improvement of 261% compared with FY23. Sales volume rose by 19% from FY23.
The group’s notably improved performance was attributed to increased sales volume as customers continued to replenish glove inventories, leading to higher utilisation rates and enhanced cost efficiency. The group saw especially strong growth in the US where sales volume soared 120% quarter on quarter, which was further driven by the high number of foreign manufacturers’ gloves being placed on the US.
With the impending imposition of high tariffs by the US on China made medical gloves, the group anticipates a greater increase in sales volume growth in the quarters to come.
The group’s bottom line for Q4’24 was affected by the sudden drastic weakening of the US dollar against the ringgit.
In response, the group has revised its selling prices upwards, the effects of which will be realised from November 2024 onwards due to the time lag.
Raw material prices were mixed quarter on quarter, with average natural latex concentrate prices trending downward by 1% to RM6.61/kg, while average nitrile latex prices rose 8% to US$0.96/kg.
Top Glove managing director Lim Cheong Guan remarked, “We are pleased that the group’s financial performance has improved significantly over the course of FY24, bringing us closer to breaking even. Our full year ebitda is positive while sales volume growth continues to be healthy. These are strong indicators of market resurgence and we are well positioned to ride the recovery wave. Our consistent progress has been driven by ongoing improvement initiatives, and with the continued support of our employees, we are well on the path to profitability and sustainable growth.”
The group has proposed a bonus issue of up to 405,964,951 warrants on the basis of 1 warrant for every 20 existing Top Glove shares, subject to shareholders’ approval at the upcoming AGM in January 2025.
As recovery for the glove industry continues to gain traction, the group anticipates continual improvement in sales orders in line with more positive demand supply dynamics. Moreover, glove sales to the US, which have already been increasing exponentially, are expected to receive an additional boost with the United States Trade Representative’s recent announcement of impending tariff increases for Chinese medical gloves from the current 7.5% to 50% effective January 2025, and to 100% by January 2026.
