Hartelega 1Q net profit up 32% to RM54.77m

KUALA LUMPUR: HARTALEGA HOLDINGS BHD [] net profit for the first quarter ended June 30, 2011 rose 32% to RM54.77 million from RM41.61 million a year earlier, due mainly to expansion in production capacity, increase in demand, effective cost control and improvement in production processes.

Revenue for the quarter increased to RM219.37 million from RM169.96 million. Earnings per share was 15.06 sen while net assets per share was RM1.45.

In a statement Aug 9, Hartalega managing director Kuan Kam Hon said the strong start to the financial year was a positive indicator of the year ahead.

“The switching from Natural Rubber to Nitrile glove has gathered momentum in Europe and demand is growing rapidly. Europe now accounts for 28% of Hartalega’s overall sales from 18% compared with the same quarter last year.

“We expect the Nitrile glove demand to grow further and our Group is well positioned to take advantage of such growth,” he said.

Kian said that as the largest nitrile glove producer globally, Hartalega’s products were much sought after given its high quality, adding that the company would continue to keep a keen eye on cost while improving on its efficiencies.

“We will continue to leverage on our emphasis on research and development as it has helped us lower costs while maintaining our competitive advantages.

“Additionally, the group will be commissioning another two more high-capacity glove production lines at plant 5 by the end of this financial year,” he said.

Meanwhile, Hartalega also announced its plan to expand its business in China with the subscription for 70% of the registered capital of YanCheng Pharmatex Medical Equipment Co Ltd for RM319,410.