Hartalega revenue exceeds RM1b for first time

Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Wednesday, 08 May 2013 10:24
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KUALA LUMPUR: HARTALEGA HOLDINGS BHD [] saw a 16.5%
increase in net profit to RM234.72 million for the financial year ended
March 31 (FY13) on higher production output that resulted in its revenue
surpassing the RM1 billion mark for the first time.
For the fourth quarter (4Q), the world’s largest synthetic gloves
manufacturer recorded a net profit of RM62.4 million, a 37.58%
increase from RM50.06 million recorded in FY12. Revenue rose by
12.3% to RM269.77 million.
In a statement to Bursa Malaysia yesterday, Hartalega said the group’s
revenue reached RM1.03 billion in FY13, up from RM931.05 million a
year ago. Earnings per share increased to 32.10 sen from 27.65 sen
previously.
In view of the strong results for FY13, the group has proposed a final interim dividend of 3.5 sen per share. This brings the
total dividend for the full year to 14 sen per share, an increase from 12 sen paid out in FY12.
Hartalega said the increase in revenue was in line with the group’s continuous expansion in production capacity and an
increase in demand.
“These results are due to our meticulous strategy and planning. We are committed to improving our efficiencies with a view to
expanding capacity, and we are confident that we will continue to do this in the new financial year,” said Hartalega managing
director Kuan Mun Leong.
“We are well-prepared to meet the growing demand in the global glove market as a result of our ongoing strategic expansion
efforts which will be coming to fruition in the years ahead.
“In fact, Plant 6 is on track to come fully on stream in July 2013, which will significantly boost our production capacity.”
Currently, the group operates 43 production lines with a capacity to produce over eight billion surgical and examination gloves
annually.
In April, Hartalega saw its share price pushed up significantly as the H7N9 avian flu virus outbreak in China worsened.
Kuan, however, believed the price rally was more on the group’s strong fundamentals than the avian flu outbreak.
Hartalega hit an all-time high of RM5.53 during intra-day trading before closing at RM5.45 yesterday.