Kossan records profit of RM528.2m in 3Q21

By NUR HANANI AZMAN / Pic TMR

KOSSAN Rubber Industries Bhd reported net profit of RM528.2 million for the third quarter ended September 30, 2021 (3Q21), from RM348.74 million it posted a year earlier. 

For 3Q21, the group’s revenue increased to RM1.3 billion compared to RM1.03 billion in 3Q20 due to higher revenue from the gloves and clean-room division but offset by the lower revenue from the technical rubber products (TRPs) division. 

Quarterly earnings per share swelled to 20.69 sen, from 13.63 sen per share in 3Q20, the group’s filing to Bursa Malaysia showed. 

“The gloves division’s revenue increased by 28.64% to RM1.22 billion in 3Q21 from RM946.57 million in 3Q20 due to the higher average selling price (ASP). 

“Performance in the current quarter was impacted by the Enhanced Movement Control Order imposed in Selangor as well as by the subsequent National Recovery Plan where affected plants were only allowed to operate at 60% workforce capacity,” Kossan said. 

The glovemaker declared a third interim dividend of 12 sen per share, to be paid on Nov 19. The ex-date for the dividend is Nov 8. 

Kossan said as they move into the 4Q21, with the ongoing vaccinations and higher vaccination rates recorded in the developed and developing countries, Covid-19 cases categorised as severe have declined.

As such, it said the demand for gloves has eased with ASP’s also declining on a gradual basis.

“However, even with these external factors, the group expects the results for the gloves division for the 4Q21 to be within expectations and for the overall full-year 2021 to be satisfactory 

“With the long-term relationships with our customers and continued demand for the group’s products in the gloves and cleanroom division coupled with a stable TRPs division, we are confident that the financial year 2021 (FY21) will be an exceptional year for the group compared with FY20,” it added.