Hartalega chief executive officer Kuan Mun Leong
KUALA LUMPUR: Hartalega Holdings Bhd
said it experienced an improved quarterly performance in the first quarter of its financial year amid a recovery in sales volume and average selling prices (ASP).
Meanwhile, it reported that its operating costs were lower due to improved production efficiency with higher capacity utilisation.
In 1QFY24, the glove maker posted a net profit of RM31.93mil, which compares to a net loss of RM52.47mil in the year-ago quarter, representing an earnings per share of 0.94 sen against a loss per share of 1.54 sen.
The group reported revenue of RM583.84mil in the quarter under review against RM440.04mil in the previous corresponding quarter.
"Amid persisting headwinds, we are encouraged by the gradual improvement in demand, supported by strategic capacity rationalisation by key industry participants and depleting inventory stockpiles.
"In addition to this, our operational efficiency enhancement measures continue to yield positive results,” said CEO Kuan Mun Leong.
However, he added that the group is impacted by shipment delays due to ongoing global shipment constraints.
Moving forward, the group will continue to strategically ramp up our production capacity while being mindful of market dynamics
"Despite ongoing external market pressures, we anticipate glove demand will continue its trajectory towards pre-pandemic levels and beyond, driven by growing global healthcare needs and hygiene awareness," said Kuan.
