KUALA LUMPUR (Dec 18): Comfort Gloves Bhd’s net profit shrunk 40.6% to RM7.07 million in the third financial quarter ended Oct 31, 2018 (3QFY19) from RM11.90 million a year ago. The sharp fall in earnings was due to the one-off logistic cost of RM5.4 million and higher tax expenses in the absence of tax allowance.

This has resulted in earnings per share down to 1.26 sen, from 2.13 sen in 3QFY18. 

Quarterly revenue, however, grew 19.2% to RM126.95 million from RM106.52 million from a year ago, thanks to an increase in sales and strengthening of the US dollar against the ringgit.  

For the cumulative nine-months ended Oct 31, 2018 (9MFY19), the company net profit also slid 40.5% to RM18.51 million, from RM31.11 million a year ago. Meanwhile, revenue went up 9.06% to RM343.34 million, from RM314.82 million in 9MFY18. 

Going forward, Comfort Gloves said 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,” the company said. 

Shares price of Comfort Gloves fell five sen or 5.32% to close at 89 sen, valuing the company at RM528.23 million. The counter saw 1.03 million shares traded.