PETALING JAYA: Hartalega Holdings Bhd is decommissioning its Bestari Jaya facility to improve operational and cost efficiencies as it continued to face challenging market conditions in its financial year ended March 31, 2023 (FY23).
This group recognised a one-off impairment of RM347 million, resulting in a loss after tax of RM239 million for FY23. Nevertheless, excluding the impairment, the group registered a full-year profit after tax of RM108 million – achieved on the back of RM2.4 billion in revenue. The group’s net cash position on March 31 stood at RM1.6 billion .
For the first quarter of the current financial year ended June 30, the group’s performance continued to be impacted, recording a loss after tax of RM51 million. Revenue for the quarter stood at RM440 million.
CEO Kuan Mun Leong said that despite the current headwinds which include the ongoing oversupply situation in the glove sector, heightened competition from global players as well as increased operating costs, Hartalega is focused on ensuring the long-term sustainability of the group.
“Leveraging our 35 years of experience in the sector and driven by our Five-Year Strategic Plan, we are single-minded in our commitment to emerge as a stronger and more resilient company. To this end, the decommissioning of our Bestari Jaya facility will enable us to consolidate our operations at our Next Generation Integrated Manufacturing Complex (NGC) in Sepang. In tandem with this, we are focused on continuous cost optimisation measures, accelerating our culture of innovation across the organisation and tapping on heightened automation and advanced technologies to hone our competitive edge,” he said in a statement.
He added that with strategic plans under way, it is optimistic that the group will weather through the current challenges.
“Underpinning this is our dedicated environmental, social and governance agenda, which we will continue to drive forward to create value and ensure our sustainable growth,” Kuan said.
