Highlight Top Glove 4Q profit falls 25%, pays 9 sen dividend

by **Cals** Sun 13 Oct 2013, 21:23

Highlight Top Glove 4Q profit falls 25%, pays 9 sen dividend

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Friday, 11 October 2013 18:57

KUALA LUMPUR (Oct 11): Top Glove Corp Bhd reported a 25% fall in fourth quarter net profit from a year earlier as revenue declined on lower selling prices for its products. Foreign exchange (forex) losses and higher taxes had also curbed bottom line.

In a statement to the exchange today, Top Glove said net profit fell to RM47.77 million in the quarter ended August 31, 2013 (4QFY13) from RM64.03 million. Revenue declined to RM548.16 million from RM607.33 million.

"The group achieved revenue of RM2.31 billion in FY2013 and RM548.2 million in 4QFY2013. Compared with corresponding periods in the preceding year, there was a slight decline in revenue attributed to a lower average selling price on the back of declining raw material costs.

Top Glove said "the improved profit before tax from operations was offset by unrealised forex losses incurred on the fair value of its US Dollar denominated foreign exchange contracts amounting to RM8.4 million in 4QFY2013 on the back of the strengthening US Dollar".

Full-year net profit was lower at RM195.85 million compared to RM202.73 million a year earlier. Revenue fell to RM2.313 billion from RM2.314 billion.

Top Glove said it plans to pay a final single-tier dividend of nine sen a share in 4QFY13. The final payout which requires shareholders' consent, brings the company’s full-year dividends to 16 sen a share.

Looking ahead, Top Glove said it will increase its nitrile glove output. This is line with growing demand for the product.

In total, the manufacturer said it will expand its glove production capacity from the current 43.9 billion pieces a year to 46.1 billion pieces by June 2014.

"In the near term, the group expects the raw material prices of latex and nitrile to trend at current levels with possibly further downward inclination.

"The recent easing of these raw material prices has enabled a more favourable operating environment for sustainable growth in demand and earnings," Top Glove said.

Trading of Top Glove shares which was suspended today will resume this Monday, the firm said.