Hartalega Q2 net profit falls 69% amid rising costs and stronger ringgit

MIDF Amanah said based on its calculations, the four gloves producers under its coverage - Top Glove Corp Bhd, Hartalega Holdings Bhd, Supermax Holdings Bhd and Kossan Rubber Industries Bhd - will experience negligible impact on earnings (Pic by Muhd Amin Naharul/TMR)

HARTALEGA Holdings Bhd saw a 69% decline in net profit for the three months ended Sept 30, 2024 (2Q25), falling to RM8.63 million, mainly due to lower export revenue from a stronger ringgit and higher raw material costs.

Without deferred tax incentives, the company would have faced a pre-tax loss of RM47.45 million.

Despite this, revenue increased by 44% year-on-year to RM652.07 million, driven by higher sales volume.

The company declared a 0.56 sen interim dividend, it stated in its bourse filing today.

Hartalega cited ongoing challenges in the glove industry, including global oversupply, competitive pricing, and shipping disruptions.

However, it noted signs of demand recovery as pandemic stockpiles diminish and consumption normalizes.

The company anticipates benefiting from upcoming US tariff hikes on Chinese gloves and plans to ramp up production capacity.

For 1HFY2025, Hartalega posted a net profit of RM40.55 million, a significant turnaround from a net loss of RM24.77 million in the same period last year, with revenue rising 38.5% to RM1.24 billion.