KUALA LUMPUR (Dec 20): Comfort Gloves Bhd's net profit jumped 44% in its third quarter ended Oct 31, 2017 (3QFY18) to RM11.9 million, from RM8.29 million a year ago, due to cost savings and capacity upgrades that mitigated impact from higher labour and energy costs.

Earnings per share rose to 2.13 sen, from 1.48 sen previously. Revenue also grew by 44% to RM106.52 million for the quarter under review, from RM 74.04 million in 3QFY17.

Over the cumulative nine-month period (9MFY18), Comfort Gloves recorded a net profit of RM31.11 million or 5.57 sen per share, up 76% from RM17.69 million or 3.17 sen per share in previous corresponding period, while revenue grew 65% to RM314.82 million, from RM190.24 million in 9MFY17.

Moving forward, Comfort Gloves said prospects for the rubber glove manufacturing sector remain strong, with increasing demand arising from switching trends towards nitrile gloves.

“Nitrile gloves now account for 61% of Malaysian rubber gloves exports. As overall demand for nitrile gloves increases, the market is seeing increased segmentation and differentiation, leading to an increase in demand for specialty gloves,” the group said in a filing with the bourse today.

“Through dedication to process rationalisation and improving operational agility, the group is confident in capturing greater market share and strengthening margins. The group is [also] confident that meeting customer expectations and continuous innovation will strengthen our position, as the bespoke specialty glove manufacturer,” Comfort Gloves added.

Comfort Gloves’ share price gained three sen or 2.86% to close at RM1.08 today, giving it a market capitalisation of RM603.49 million.

The counter has appreciated by 63.64% from 66 sen on Dec 29 last year.