PETALING JAYA: Top Glove Corp Bhd has set an ambitious target of 60% sales volume growth for financial year 2025 (FY25), signalling the potential recovery of the global rubber glove industry after facing post-pandemic headwinds.
Managing director Lim Cheong Guan expressed optimism about the projection and recovery of the sector, highlighting the increased customer demand as a driver for the expected growth.
“The company plans to ramp up production to meet this demand while implementing cost-efficiency measures to maintain competitiveness in a challenging market environment. We are seeing positive trends in our markets as global health systems normalise and consumption patterns stabilise,“ he said at Top Glove’s first quarter FY25 (Q1’25) ended Nov 30, 2024 webinar briefing today.
Lim said despite hurdles such as industry overcapacity and fluctuating raw material costs, Top Glove remains focused on innovation and sustainability. “The company has taken steps to streamline its operations and strengthen relationships with key clients, enabling a quicker response to market shifts.”
He noted that Top Glove’s robust growth strategy reflects the company’s confidence in the sector’s gradual recovery, buoyed by increasing global awareness of hygiene and healthcare needs.
Lim disclosed that Top Glove is exploring opportunities in emerging markets, particularly in regions with increasing healthcare investments to support its ambitious growth target. “The company aims to diversify its product offerings, catering to a broader range of industries such as food handling and industrial safety, further expanding its revenue streams,“ he said.
While challenges persist, including ongoing competition from regional players and geopolitical trade uncertainties, Lim said, Top Glove’s proactive approach, which underscores its determination to maintain its leadership position.
“By leveraging technological advancements and strategic partnerships, the company is poised to capitalise on a rising tide of global glove demand.”
He said investors and stakeholders will be watching to see how Top Glove executes its ambitious plans.
“With a clear focus on innovation, efficiency and sustainability, the company appears well-positioned to ride the wave of industry recovery and reaffirm its status as a key player in the global healthcare supply chain,” he noted.
On the outlook for FY25, Lim said the company is influenced by broader geopolitical dynamics, particularly the evolving trade relations between the United States and China.
“With the US being a key market for medical gloves and China serving as a significant player in the global supply chain, the company is closely monitoring the impacts of tariff policies, trade restrictions and shifting economic alliances.
“The ongoing US-China tensions could present challenges and opportunities for Top Glove. For instance, heightened scrutiny of Chinese imports might create openings for Malaysian manufacturers like Top Glove to capture a larger US market share.
“Conversely, disruptions in Chinese raw material supply chains could potentially impact production costs or timelines,“ he said.
Top Glove reported RM886 million in sales revenue for Q1’25, marking an impressive 80% year-on-year growth. The company achieved a net profit of RM17 million, with sales volume rising by 104% compared to the same period in 2024.
Lim said the strengthening of the US dollar against the ringgit during the quarter contributed to improved margins.
Top Glove revised its average selling price upwards in August and September due to increased raw material costs and a weakening US dollar in Q4’24.
“The impact of this price adjustment began to materialise towards the end of Q1 FY25, with full effects expected in Q2 FY25. Raw material prices remained mixed quarter-on-quarter, with the average price of natural rubber concentrated latex rising by 4% to RM6.88 per kilogramme, while nitrile latex prices fell by 3% to US$0.94 per kilogramme,“ he noted.
