Friday 29 Mar 2024
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KUALA LUMPUR (Nov 8): Hartalega Holdings Bhd reported a 6% year-on-year net profit rise in the second quarter ended Sept 30, 2018 (2QFY19), despite a strong double-digit revenue growth, after incurring other operating expense of RM11.1 million, and higher finance costs. 

Quarterly net profit grew to RM120.22 million from RM113.34 million, while revenue jumped 22% y-o-y to RM714.24 million from RM584.62 million in 2QFY18. Earnings per share for 2QFY19 grew to 3.62 sen per share, from 3.44 sen per share, its quarterly results filing today showed.

The group declared a first interim single-tier dividend of 2.2 sen per share, payable on Dec 28 this year.

Hartalega attributed its improved performance to stronger demand for nitrile gloves and higher average selling price, in tandem with the increase in nitrile cost. It said sales volume grew by 10.6% during the quarter. 

However, the impact of these was partially offset by the other operating expense of RM11.1 million — it recorded an other operating income of RM9.1 million a year ago — and as finance costs grew to RM2.52 million from RM1.86 million.

For the first half of the year (1HFY19), Hartalega reported net profit grew 17% y-o-y to RM245.09 million from RM209.73 million, while revenue rose 20% to RM1.42 billion from RM1.19 billion.

In a separate statement, Hartalega’s managing director Kuan Mun Leong said the group remains confident regarding its outlook.

“Tapping on this through our continuous expansion plans via our Next Generation Integrated Glove Manufacturing Complex (NGC), we expect to see earnings growth, moving forward.

“To this end, three production lines at Plant 5 of the NGC are currently operational, with remaining lines to be progressively commissioned and fully completed by March 2019,” he wrote in the statement.

Furthermore, Kuan said the group has successfully delivered its first shipment of the world’s first anti-microbial gloves (AMG) to a major German medical supplies company in September.

“Potential market share growth for AMG is certainly promising. We are optimistic that on the back of these sustained growth plans, prospects remain bright for the group,” Kuan added.

Shares of Hartalega slipped one sen or 0.16% to close at RM6.31 today, valuing the group at RM21 billion.

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