Hartalega 2Q net profit rises 8% to RM63m

by **Cals** Wed 13 Nov 2013, 13:59

Business & Markets 2013

Written by Surin Murugiah of theedgemalaysia.com

Wednesday, 13 November 2013 10:32

KUALA LUMPUR: Hartalega Holdings Bhd’s net profit for the second quarter of its 2014 financial year ended Sept 30 (2QFY14) rose 8.2% to RM63.3 million from RM58.5 million a year earlier, due mainly to the easing of raw material prices — nitrile and natural latex.

In a statement yesterday, 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 year before.

Earnings per share (EPS) for the group’s first six months was 17.05 sen compared with 15.31 sen for the same period a year ago. The group’s net assets per share was 117.91 sen as at Sept 30 this year.

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 half of the current financial year had been positive, and the company is confident it will be able to maintain its performance.

“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 increase 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.

This article first appeared in The Edge Financial Daily, on November 13, 2013.