Highlight Hartalega's 3Q net profit surges by 47%

by **Cals** Wed 17 Feb 2016, 01:28

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[size=28]Hartalega's 3Q net profit surges by 47%

By Billy Toh / theedgemarkets.com | February 16, 2016 : 7:30 PM MYT

KUALA LUMPUR (Feb 16): Hartalega Holdings Bhd’s net profit surged 47% to RM72.8 million or 4.44 sen per share for the third quarter ended Dec 31, 2015, from RM49.5 million or 3.20 sen per share in the previous corresponding period.

The nitrile glove maker attributed the significant increase on profits to the company’s continuous expansion in production capacity and higher demand.

Quarterly revenue climbed 39% to RM398 million against RM286.4 million 3QFY16.

“Our long-term expansion strategy via the Next Generation Integrated Glove Manufacturing Complex (NGC) is clearly bearing fruit, as demonstrated by our strong performance over the last few quarters.

“We have seen good earnings growth with increased contributions arising from the new production lines of the NGC,” said Kuan Mun Leong, Managing Director of Hartalega in a statement.

For the cumulative nine-month period ended Dec 31, 2015, Hartalega registered a net profit of RM195.9 million or 11.95 sen per share, an increase of 26.6% from its previous year of RM154.8 million or 9.99 sen per share. The company recognised a net foreign exchange loss of RM21 million for the nine-month period, compared with RM5.6 million in the previous corresponding period.

Accumulative revenue grew by 30.6% to RM1.09 billion, from RM840.9 million a year ago.

The board declared a second interim dividend of two sen per share single tier for its financial year ending 31 March 2016, after a sterling performance. The entitlement date is on March 10 and payable on March 30.

Looking ahead, Hartalega is bullish on the global demand for nitrile rubber gloves, as there is a switching momentum from latex to nitrile rubber gloves and increasing healthcare requirements. On the back of the strong demand, Hartalega is optimistic that it will achieve the internal target growth for the financial year ending March 31, 2016.

“Despite external pressures, including more competitive sales pricing, we are confident that we will continue to deliver sustained earnings, particularly as additional production lines come on-stream.

“Furthermore, with the construction of Plant 3 and 4 of the NGC well underway, we are set to see even further capacity growth in the year ahead, which will enable us to cater to the strong global demand for nitrile gloves,” said Kuan.
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