Hartalega Holdings Bhd chief executive officer Kuan Mun Leong
KUALA LUMPUR: Hartalega Holdings Bhd
notes positive signs of global oversupply easing through capacity rationalisation efforts.
“Despite continued challenges in the glove sector, we see positive indicators that the ongoing global oversupply is gradually being addressed through key capacity rationalisation efforts, thus easing some pressure on the excess supplies in the market.
“On the demand front, recent demand stabilisation after the notable decline in 2023 and the expected gradual return to pre-pandemic levels in the later part of 2024 or early 2025 also bodes well for prospects in the industry over the long term,” chief executive officer Kuan Mun Leong said in a statement.
He added that the group would weather the tough conditions in the sector and take this opportunity to improve operational efficiency and heighten best practices in terms of fiscal management.
“Our 5-Year Strategic Plan will be our blueprint during this challenging period and we are confident that this will enable the group to emerge as a stronger and more resilient company, with an innovative and agile approach to drive us forward,” Kuan said.
In the third quarter ended Dec 31, 2023 (3Q). Hartalega posted a net profit of RM22.4mil, or earnings per share of 0.66 sen against a net loss of RM31.9mil, or loss per share of 0.93 sen in the same quarter last year.
Revenue for the quarter fell 10% to RM415.6mil from RM461.8mil last year.
The improved performance for the quarter was attributable to lower raw material costs, reduced utilities expenses, enhanced production efficiency from higher capacity utilisation, and cost savings derived from the group’s ongoing operational rationalisation exercise, which involves the decommissioning of the Bestari Jaya facility.
Additionally, the group recorded higher interest income and a reversal of a provision no longer required during the quarter.
In the first nine months to Dec 31, the glove maker posted a net loss of RM2.4mil on revenue of RM1.3bil.
