Top Glove Corporation's net profit plunges by 99% to $9.14m in Q3 2022

In the same period last year, its profit was $816.54m (RM2.06b).

Top Glove Corporation's net profit plunged to $9.14m (RM29.3m) in the third quarter (Q3) of 2022 from $816.54m (RM2.06b) in the same period last year.

The profit decrease was on the back of a decline in its revenue which fell by 65% to $461.66m (RM1.47b) from $1.29b (RM4.16b) in Q3 2021.

READ MORE: Top Glove’s net profit declines 97% YoY in Q2 2022

"As the pandemic transitions into an endemic, the industry has been experiencing the effects of the normalisation in terms
of demand and average selling price," the medical glove maker said.

The resulting softer performance has occurred amidst a convergence of headwinds, with production cost moving upward due to global inflation and as the Russia Ukraine conflict driving up crude oil prices," it added.

Top Glove added that they also had to deal with an increase in natural gas, electricity tariffs, and minimum wage an implementation which came into effect 1 May 2022.

"The escalating costs resulted in margin compression, as the Group was unable to fully pass the cost through amidst the ongoing oversupply situation. However, average selling prices are declining at a far slower pace which will help cushion the cost impact going forward," the company explained.