Top Glove's net profit dives 36.1% to $21.6m

Increased competition hurt its earnings.

While Singapore-listed disposable and manufacturing gloves maker Top Glove corporation enjoyed its highest ever revenue during the quarter ending in August, its overall earnings remained soft, diving 36.1% to $21.6 million (RM65.8 million).

This was due to the increased competition and pricing pressure the company had to face in the last quarter of its financial year.

However, Top Glove is still satisfied with its full year performance, as its headline rose 15.1% to $952 million (RM2.89 billion).

"The strong improvement in results was attributed to several improvement initiatives which have proven instrumental in enhancing quality and cost efficiency. A stronger USD, as well as lower raw material prices earlier in the financial year, also boosted the group’s performance," Top Glove said in its report filed in Singapore Exchange.

Looking forward, the group is cautious of the competitive business landscape ahead, as it foresees the likelihood of oversupply and industry consolidation taking place.

"However, the Group is confident of overcoming any challenges that may arise by enhancing its cost management and optimising the efficiency of its production lines," it stated.