KUALA LUMPUR (Nov 7): Glovemaker Hartalega Holdings Bhd reported a 59.2% surge in net profit for its second financial quarter ended  Sept 30, 2017 (2QFY18) to RM113.34 million or 6.87 sen per share, from RM71.22 million or 4.34 sen per share a year ago, thanks to an increase in sales revenue and improvement in productivity.

In a filing to Bursa Malaysia today, Hartalega also attributed its higher profitability in the quarter to a net foreign exchange gain of RM7.8 million, compared with a net foreign exchange loss of RM4.4 million in the corresponding quarter in the preceding year.

Hartalega reported a 33.8% improvement in 2QFY18 revenue to RM584.62 million, from RM436.98 million a year ago, due to an increase in sales volume by 30.2% and strengthening of the US dollar.

For the first half of its financial year ended Sept 30, 2017 (1HFY18), the group’s net profit grew by 64.6% to RM209.73 million or 12.72 sen per share, from RM127.39 million or 7.76 sen per share a year ago, while its 1HFY18 revenue increased by 41.4% to RM1.19 billion, from RM838.8 million a year ago.

The group declared a first interim dividend of 3.5 sen per share, to be paid on Dec 28, 2017. The entitlement date of the dividend has been fixed on Dec 8.

Hartalega managing director Kuan Mun Leong said in a statement that the group’s sterling performance was driven by its continuous expansion in production capacity via the Next Generation Integrated Glove Manufacturing Complex (NGC).

“Increased sales volume and higher average selling prices, coupled with rising demand and the strengthening USD, further contributed to our results.

“Most importantly, our dedicated team of Hartalega employees, also known as Hartanians, worked hard to deliver this outstanding performance,” he said.

Kuan added that the group is is on track to achieve its strong growth targets. 

“With the NGC underpinning our growth for the coming years ahead and driving greater productivity and manufacturing efficiency, we are well-prepared to meet the growing global demand for high quality nitrile gloves.

“Particularly as our remaining NGC Plants are progressively commissioned, we are confident that we will be able to deliver sustained growth,” he said.

Hartalega shares closed up 24 sen or 3.1% to an all time high of RM8 today, for a market capitalisation of RM13.2 billion. Year to date, its shares have appreciated by 67.7% from its closing price of RM4.77 on Dec 30, 2016.