PETALING JAYA: Kossan Rubber Industries Bhd saw a 9.2% decrease in its net profit to RM49.18 million for the third quarter ended Sept 30, from RM54.15 million mainly due to lower average selling prices and the increase in natural gas costs.
Revenue for the quarter dipped 7.4% to RM531.26 million, from RM573.9 million a year before.
However, for the cumulative nine-month period, Kossan’s net profit increased 15.9% to RM163.78 million, from RM141.27 million with a 5.7% increase in revenue to RM1.64 billion from RM1.55 billion in the previous corresponding period.
“The improved year-to-date performance was mainly attributable to the improved performance from the gloves and technical rubber divisions,” it said in its filing with Bursa Malaysia.
Kossan said the gloves division’s improved performance was achieved on the back of demand growth for its glove products, with higher volume sold from increased production output, as well as increased manufacturing efficiency and effective cost controls as compared with the previous year corresponding period.
The technical division saw increased sales deliveries during the reported period.
On its prospects moving forward, Kossan Rubber said the first nine months of the year had been characterised by cost increases.
“With a performance strategy that focuses on cost control, improvements in manufacturing technology and operating efficiency, management is confident of achieving an improved performance in the final quarter of 2019,” it said.
