KUALA LUMPUR (Sept 28): Comfort Gloves Bhd recorded a 54.8% decline in net profit to RM4.1 million in the second financial quarter ended July 31, 2018 (2QFY19) compared with RM9.07 million a year ago.

Its earnings was eroded by the one-off logistics expenses of RM4.4 million — an amount that is bigger than its net profit. However, the glove maker did not reveal the reason for the logistic costs.

On its operation, the manufacturer’s gross profit grew 8% to RM14.14 million during the quarter under review on the back of improvements in production efficiency and quality, according to its filing with Bursa Malaysia.

Quarterly revenue, however, declined 4.2% to RM109.8 million from RM114.6 million in the previous corresponding quarter.

For the six-month period ended July 31, 2018 (6MFY19), the group recorded a 40.45% decline in net profit to RM11.44 million from RM19.21 million in the previous year despite a 3.9% increase in revenue to RM216.39 million from RM208.3 million in the previous year’s corresponding period.

Going forward, Comfort Gloves said that prospects for the rubber glove manufacturing sector remain strong due to increasing demand for nitrile gloves.

“Through dedication to process rationalisation and improving operational agility, the group is confident of capturing greater market share and strengthening margins,” it said.

Although it is still subject to volatility in raw material and energy costs, Comfort Glove said it would continue to emphasise research and development as the key method to expand market offerings and grow its sales.

Comfort Gloves encountered fierce selling after news that its products were being listed under the US Food and Drug Administration (FDA) alert list in March. It hit a low of 70 sen.

The stock staged a rebound soon after. It closed at RM1 today, giving the group a market capitalisation of RM561.95 million.