Top Glove has reported RM2.87 billion ($943.1 million) in earnings for the 2QFY2021 ended August, 24.8 times higher than earnings of RM115.7 million in the 2QFY2020.

This brings earnings for the 1HFY2021 to RM5.23 billion, compared to earnings of RM227.1 million in the same period a year ago.

On a fully diluted basis, earnings per share (EPS) for the 2QFY2021 and 1HFY2021 expanded to 35.72 sen and 64.69 sen respectively, from 1.58 sen and 2.91 sen.

Revenue for the 2QFY2021 stood at RM5.37 billion, the group’s highest ever quarterly sales revenue, which stood nearly five times higher than revenue of RM1.23 billion in the 2QFY2020.

1HFY2021 revenue, similarly, rose nearly five times to RM10.12 billion from RM2.44 billion in the same period a year ago.

Get the latest Singapore corporate news stories for FREE

Operating profit for the 2QFY2021 stood 24.9 times higher y-o-y at RM3.72 billion, while 1HFY2021 operating profit came up to RM6.81 billion, 23.4 times higher y-o-y.


SEE:Top Glove to establish JV company with Japan’s Fimatec


The higher figures were mainly attributable to the continued global demand for gloves, says the group in a March 9 statement.

Sales volume (quantity sold) during the quarter rose 19% y-o-y, while easing 8% q-o-q due to the temporary stoppages in production at the Meru, Klang factories in November and December 2020.

The improved profit was attributable to higher sales output, high utilisation levels, compled with higher average selling prices (ASPs).

In 2QFY2021, natural latex concentrate saw a 35% y-o-y increase to an average of RM5.97 per kg. Nitrile latex surged 114% y-o-y to an average of US$2.14 ($2.88) per kg due to supply shortages.

However, the group reported that average prices for nitrile latex have been falling since the beginning of 2021, easing by 5% from January 2021 to March 2021, as supply normalises.

Looking ahead, the group says it will continue to “pursue organic expansion, inorganic expansion and strategic investments” to remain “well-positioned” to meet the continuing glove demand.

To this end, it has earmarked RM10 billion for capital expenditures (Capex) from FY2021 to FY2025, which will increase its production capacity by about 100 billion gloves to over 200 billion pieces of gloves.

The group adds that even with the global rollout of Covid-19 vaccines, it is confident that the global glove demand will “remain robust”.

“While demand is likely to stabilise post-pandemic, the Group expects it will not revert to pre-pandemic levels owing to increased hygiene awareness as well as uncertainties surrounding the resolution of the Covid-19 pandemic. Moreover, having gone through this pandemic, governments are expected to continue stockpiling on gloves and other personal protective equipment (PPE) in preparation for possible future pandemics,” it says.

During the quarter, the group repurchased 42.13 million shares from the open market at an average price of RM6.30 per share. The total consideration of the buybacks stood at RM265.6 million, which were internally funded.


For more stories about where the money flows, click here for our Capital section 


For the 2QFY2021, the group will be paying a dividend of 25.2 sen per share, amounting to a payout of 70% of its PATMI.

The dividend payment comprises 50% according to the company’s dividend policy since 1QFY2021 and a special dividend of 20%.

“The Board of Directors is pleased with the company’s continued strong performance and the multiple remedial and improvement initiatives the group has implemented towards uplifting employee welfare. In both these instances, this is just the beginning for us and we aspire to do much more. We will keep putting every effort into continually improving our performance in terms of financial results, as well as levelling up our sustainability practices so they are on par with international standards,” says Top Glove’s managing director Dato’ Lee Kim Meow.

Unitholders can expect to receive their dividends on April 6.

As at 4.08pm, shares in Top Glove are trading 3 cents higher or 1.8% up at $1.69 on SGX, and 12 sen higher or 2.4% up at RM5.16 on the Bursa.