Hartalega 1Q net profit rises 17.9% y-o-y to RM63m

Hartalega 1Q net profit rises 17.9% y-o-y to RM63m
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Tuesday, 06 August 2013 17:01

KUALA LUMPUR (Aug 6): HARTALEGA HOLDINGS BHD []’s net profit for the first quarter ended June 30, 2013 rose 17.9% to RM63 million compared to RM53.4 million a year earlier, on the back of a 12.2% increase in revenue to RM278 million from RM247.6 million a year earlier.


In a statement Tuesday, Hartalega said its earnings per share increased to 8.56 sen from 7.30 sen for the same period in the previous year.


Net assets per share stood at 109.77 sen, it said.


Hartalega managing director Kuan Mun Leong said the company had begun the financial year on a strong note, and was confident of maintaining its pole position given its prospects ahead driven by the ongoing switching momentum from latex to nitrile gloves.


Kuan said global demand for nitrile gloves wass growing at a steady rate of over 20% per annum and the company expects that this would be further buoyed by rising demand in key markets as well as emerging markets in the coming years.


He added that Hartalega was well-positioned to meet this growing demand.


“Our Plant 6 is now fully operational with 10 high capacity production lines boosting our production capacity by 30% with an additional 3.9 billion pieces of gloves per annum.


“The improved operational efficiency of the new plant’s production lines contributed to the increase in our profit margins,” he said.


Kuan said Hartalega was embarking on its largest undertaking to date with its Next Generation Integrated Glove Manufacturing Complex (NGC) which would quadruple its production capacity.


“As global demand for nitrile gloves continues to outstrip industry capacity, we are assured that the foundations which we have put in place will bear fruit and ensure our sustainable growth for the long-term,” he said.