KUALA LUMPUR — High Glove, the world’s largest latex glove maker, on Tuesday introduced a surge in web revenue and gross sales for the three months via February on will increase in income and common promoting costs, saying it sees no indicators of a slowdown in demand regardless of the worldwide rollout of COVID-19 vaccines.
Web revenue for the Malaysia-based firm soared twentyfourfold within the interval from December via February, to 2.87 billion ringgit ($695 million) from the year-earlier quarter. Income elevated 336% to five.37 billion ringgit.
For the September-February fiscal first half, web revenue jumped 22 instances to five.22 billion ringgit from a yr earlier, whereas gross sales rose 315% to 10.12 billion ringgit.
“The improved revenue got here on the again of upper gross sales output, excessive utilization ranges which amplified manufacturing effectivity, coupled with increased common promoting costs according to market pricing,” the corporate stated in a press release.
It additionally attributed what it described as a “outstanding and wholesome revenue” to wide-ranging enhancements via “digital transformation, steady R&D and innovation, high quality and productiveness initiatives in addition to expertise acquisition and growth.”
High Glove has recorded a string of report monetary outcomes. Annual earnings for the interval ended Aug. 31, 2020, jumped over 400% from the earlier yr as demand skyrocketed for latex gloves as a result of coronavirus pandemic.
“Within the second monetary quarter, pure latex focus registered a 35% improve to a mean of 5.97 ringgit/kilogram and nitrile latex went up 114% to a mean of $2.14/kilogram year-on-year, following shortages in provide,” the assertion says, referring to the December-February quarter.
“Nonetheless, common costs for nitrile latex have been on the downtrend for the reason that begin of 2021, easing by 5% from January 2021 to March 2021, as provide normalizes,” the assertion says.
The corporate is optimistic about its future regardless of prospects for fewer COVID-19 infections. On Tuesday it stated that even with vaccination drives underway all over the world it’s assured world glove demand will stay strong.
“Whereas demand is more likely to stabilize post-pandemic, the Group expects it is not going to revert to pre-pandemic ranges owing to elevated hygiene consciousness in addition to uncertainties surrounding the decision of the COVID-19 pandemic,” the assertion says. “Furthermore, having gone via this pandemic, governments are anticipated to proceed stockpiling on gloves and different private protecting gear (PPE) in preparation for doable future pandemics.”
High Glove’s surge has made it one in every of Malaysia’s most dear firms.
On the time of its most up-to-date annual outcomes, the corporate had estimated that annual demand for gloves would develop by 20% in 2020, 25% in 2021 and 15% thereafter. On Tuesday, High Glove stated world glove demand is estimated to develop from a pre-pandemic stage of about 10% per yr to about 15% per yr post-pandemic, following a rise in utilization coupled with heightened hygiene consciousness.
It additionally introduced an enlargement plan with allotted capital expenditure of 10 billion ringgit between 2021 to 2025 to make sure the corporate stays well-positioned to satisfy the continued anticipated sturdy world glove demand.
The investments would lead to a rise in its present glove manufacturing capability by about 100 billion items to a complete capability of over 200 billion items a yr.