Hartalega 2Q net profit rises 8.2% to RM63.3m, declares interim dividend 3.5 sen

by **Cals** Tue 12 Nov 2013, 21:04

Business & Markets 2013

Written by Surin Murugiah of theedgemalaysia.com

Tuesday, 12 November 2013 16:55

KUALA LUMPUR (Nov 12): Hartalega Holdings Bhd net profit for the second quarter ended Sept 30, 2013 rose 8.2% to RM63.3 million from RM58.5 million a year earlier, due mainly to an easing in raw material prices of nitrile and natural latex.
In a statement Tuesday, Hartalega said revenue for the quarter rose 10.2% to RM280.9 million.
The glovemaker declared a first interim dividend of 3.5 sen per share.
For the six months ended Sept 30, Hartalega’s net profit rose 12.7% to RM126/3 million from RM112 million a year earlier, on the back of a 11.2% rise in revenue to RM558.9 million compared with RM502.6 million the prior year.
Earnings per share (EPS) for the Group’s first six months was 17.05 sen compared with 15.31 sen for the same period in the previous financial year. The Group’s net assets per share was 117.91 sen as at 30 September 2013.
Hartalega said the improved operational efficiency of the new production lines contributed to the increase in operating profit margin as well.
Hartalega managing director Kuan Mun Leong said the first of the current financial year had been positive, and the company was confident that it would be able to maintain its performance.
“Our continuous improvements to operational efficiency and production capacity coupled with the steady rise in demand for nitrile gloves certainly bode well for the group, as we are well-positioned to meet this demand growth.”
“In particular, our Next Generation Integrated Glove Manufacturing Complex (NGC) will set the foundation for our sustainable long-term growth. The NGC will not only see our production capacity increasing substantially, we will also see productivity gains as a result of economies of scale as we undertake initiatives to develop our in-house technological competencies and expand our human capital in the coming years,” said Kuan.