Top Glove Corporation Bhd or “Top Glove” announced its financial results for the First Quarter (1QFY2024) ended 30 November 2023, as it gathers momentum on its journey to recovery.
Despite persistent challenges in the operating landscape, Top Glove delivered a commendable performance in 1QFY2024, attaining Sales Revenue of MYR 493 million, an increase of 4 per cent quarter on quarter, while Loss from Operations continued to narrow by 39 per cent to MYR 60 million compared with the previous quarter. The Group also saw an improvement in its 1QFY2024 Loss After Tax of MYR 47 million, representing a 90 per cent reduction from its 4QFY2023 Loss After Tax, which included a one-off impairment of MYR 392 million. Meanwhile, Top Glove recorded positive EBITDA of MYR 21 million, an increase of 320 per cent against the previous quarter and total positive cash inflow from operations of MYR 17 million, which are areas of priority for the Group. Sales Volume also showed growth versus 4QFY2023.
Driving the Group’s improved results were its ongoing operational, quality and cost optimisation efforts which helped offset the increase in raw material prices. Additionally, the uptick in Sales Volume which led to increased utilisation and efficiencies, also had a positive effect on the bottom line.
Mr Lim Cheong Guan, Managing Director of Top Glove remarked, “We are encouraged by the continual improvement in our results from quarter to quarter. This is testament to the effectiveness of our ongoing quality and cost optimisation, and operations enhancement measures outlined in the Top Glove Turnaround Plan. With glove orders resuming, we believe this is also indicative of the market rebounding, and we are hopeful of making a sustained recovery in the coming quarters.”
As Top Glove progresses on the road to recovery, it continues to focus on ESG. The Group is pleased to have earned the EcoVadis Sustainability Bronze Medal, having secured its placement in the upper segment amongst all evaluated companies and industries in 2023. The recognition underscores the effectiveness of Top Glove’s robust management system in meeting sustainability criteria which includes environmental impact, labour and human rights, ethics and sustainable procurement, based on the methodology employed by EcoVadis, the world’s largest provider of business sustainability ratings based in Paris with a global network of more than 100,000 rated companies.
The Group is also working closely with stakeholders to ensure it meets new obligations under the European Union Deforestation Regulation (EUDR), which will apply starting 30 December 2024. Under this regulation, companies trading in commodities such as natural rubber and products derived from natural rubber, are required to conduct due diligence on their supply chain to ensure the goods do not result from recent deforestation, forest degradation or breaches of local environmental and social laws.
Looking ahead, the Group maintains a positive mid to long term outlook on the glove industry, as gloves are an essential, single use item in the healthcare, industrial and F&B sectors with no viable replacement. The Group is also optimistic that global glove demand growth of approximately 8 per cent will resume in time to come, along with glove consumption; driven by customers’ replenishment of depleting glove stockpiles as well as robust industry fundamentals, and further spurred by increased health and hygiene awareness post pandemic.
“We are pleased to have commenced the new financial year 2024 on a stronger note. Going forward, our focus will remain on bolstering our core glove business, through quality and cost enhancement initiatives, so we are well positioned to maintain the upswing in our performance and expedite our recovery”, Mr Lim concluded.
Source: Top Glove Corporation Bhd
