Malaysia’s Top Glove quarterly earnings plunge 48% on slower sales By Reuters
KUALA LUMPUR, (Reuters) – Malaysia’s Top Glove Corp Bhd reported a 48% decline in fourth quarter earnings due to slower sales.
Globally, Top Glove Corp Bhd posted net profits of 607.9 millions ringgit (or $1145.88million) in June-August. That compares with 1.17 trillion ringgit last year. It is still below the estimate of 8.69 billion by Refinitiv analysts.
According to a filing on the stock exchange, revenue dropped 32% and was at 2.11 billion Ringgit.
The manufacturer stated that the quarterly results were softened due to normalizing demand after mass vaccination rollout. This led to lower sales volumes and (prices) which weren’t matched by an corresponding decrease in raw materials prices.
The previous US ban on imports continued to impact sales. But the year-long ban, imposed on Top Glove for alleged forced labour abuses, was lifted https://www.reuters.com/business/malaysias-top-glove-says-cleared-resume-business-with-us-2021-09-10 last week.
Top Glove was suffering from a bad reputation due to the ban. The ban came during record profits for the company, as COVID-19 accelerated demand.
According to Top Glove, the removal of the ban will boost sales to its Malaysian operations. The United States accounts for 15%, and the company sees an extremely competitive market.
($1 = 4.1670 ringgit)
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