Felicia Tan Fri, Jun 10, 2022
Top Glove has reported earnings of RM15.3 million ($4.8 million) for the 3QFY2022 ended May 31, 99.2% lower than earnings of RM2.04 billion in the corresponding period the year before.
The lower figure comes as the world transitions from the Covid-19 pandemic to living with it as an endemic.
The decline is also attributable to the high base in the same period the year before, when the pandemic was at its peak. At the time, demand and average selling prices (ASPs) for gloves stood at all-time highs, with lower operating costs.
In addition, the ongoing headwinds such as higher production costs due to global inflation and the Russo-Ukraine conflict, has contributed to the softer performance.
Furthermore, the group had to contend with increases in natural gas and electricity tariffs, as well as minimum wage implementation which came into effect May 1.
Year-to-date, the glove manufacturer posted earnings of RM288.6 million, 96.0% lower than earnings of RM7.26 billion in the same period the year before.
Earnings per share (EPS) for the 3QFY2022 fell to 0.19 sen from 25.42 sen on a fully diluted basis. EPS for the period year-to-date also fell to 3.60 sen from 90.14 sen previously.
During the 3QFY2022, Top Glove’s revenue stood at RM1.5 billion, down 64.8% y-o-y.
Other operating income also fell by 10.9% y-o-y to RM45.1 million.
Profit from operations for the quarter declined by 98.4% y-o-y to RM41.5 million.
In the 3QFY2022, Top Glove posted share of losses of an associate of RM2.0 million, compared to the share of profits of RM707,000 in the same period the year before.
Profit before tax stood at $38.4 million, down by 98.5% y-o-y.
As at May 31, cash and cash equivalents stood at RM485.6 million.