Hartalega records stellar net profit in Q2


HARTALEGA Holdings Bhd’s net profit surged to RM544.96 million in the second quarter ended Sept 30, 2020 (Q2 2020) compared with RM103.87 million in Q2 2019.

Revenue soared by 89.7 per cent to RM1.35 billion against RM709.42 million previously on the back of higher sales volume during the quarter under review, the world’s largest nitrile glove producer said.

“On the global front, demand for medical supplies, such as gloves, remains strong due to the COVID-19 pandemic.

“With cases continuing to soar in the United States, India, Latin America, and other countries, the demand for gloves is expected to grow in the coming years,” it said in a filing with Bursa Malaysia today.

Hartalega remains optimistic about the longer-term prospects underpinned by growing demand for rubber gloves and ongoing expansion plans.

The group said the rubber glove sector is expected to undergo a structural step-up in demand on the back of increased glove usage from emerging markets with low glove consumption per capita and heightened hygiene awareness.

The overall projected growth in demand would likely outstrip supply for the next few years, it said.

In line with the growing rubber glove demand globally, the group would continue with its Next Generation Integrated Glove Manufacturing Complex (NGC) capacity expansion plans.

To date, all 12 production lines in Plant 6 of NGC facility have been fully commissioned.

Plant 7, which caters to speciality products, is expected to begin commissioning in the Q4 2020 and would have an annual installed capacity of 2.7 billion pieces, the group said.

“With the progressive commissioning of Plant 7, the group’s annual installed capacity is expected to increase from the current 41 billion to 44 billion pieces by financial year 2022,” it added.