Higher sales lift Hartalega, Supermax profit


Hartalega Holdings Bhd’s profit for the third quarter ended Dec 31, 2018 (3QFY19), increased 5.96% year-on-year (YoY) to RM119.76 million, in tandem with higher sales achieved.

In an exchange filing yesterday, the nitrile glove manufacturer said the improvement in sales revenue was contributed by growing demand from customers and higher average selling price, along with an increase in nitrile cost.

Revenue for the period rose 19.94% YoY to RM723.39 million on stronger demand for nitrile gloves as sales volume rose 9.6%.

Earnings per share (EPS) for the quarter was 3.6 sen, higher than 3.43 sen in 3QFY18.

MD Kuan Mun Leong said the business environment remains challenging with heightening competition and cost increases via the minimum wage hike, higher natural gas tariffs and additional costs associated with social compliance.

“We remain optimistic on the long-term prospects for the group. The first four plants of our Next Generation Integrated Glove Manufacturing Complex are fully operational and we have commissioned six out of 12 lines for Plant 5, with the remaining lines set to come on stream progressively.

“Construction of Plant 6 is on track and construction of Plant 7 is scheduled to commence in May 2019,” he said in a statement yesterday.

He added that the group’s efficiency will continue to improve with the completion of new plants and meet competition.

Meanwhile, Malaysia’s second-largest rubber glove maker Supermax Corp Bhd posted a 2Q19 net profit increase of 6.24% YoY to RM38.14 million on higher sales and improved efficiency from new production lines.

Its revenue for the quarter rose 14.64% YoY to RM385.1 million on the commissioning of new replacement lines at its Perak plant and full quarter contribution from Plant 10 and Plant 11.

Supermax’s EPS for the three months ended Dec 31, 2018, amounted to 5.82 sen versus 5.48 sen a year ago.

Supermax noted that the global market for disposable gloves remains vibrant for both the natural rubber and nitrile variants, driven by rising healthcare awareness and healthcare reforms mandating use in the medical and other non-traditional sectors.

Construction works for its Plant 12 had commenced, it also noted in its exchange filing yesterday.

The group continues to progress in developing its contact lens business and is working to obtain the necessary product licences and approvals and expanding its product offering to include lenses such as toric and colour lenses.

Supermax has declared an interim single tier dividend of 1.5 sen to be paid on April 18, 2019, while Hartalega declared a second interim dividend of 2.2 sen, to be paid on March 28, 2019.