KUALA LUMPUR (Oct 11): Top Glove Corp Bhd’s net profit for the fourth quarter ended Aug 31, 2018 (4QFY18) grew 7.5% to RM101.6 million or 7.95 sen per share, as compared with RM94.49 million or 7.54 sen per share a year ago, on higher sales volume.
Its quarterly revenue rose 34.8% to RM1.22 billion, its highest ever sales revenue attained within a single quarter, against RM902.42 million in 4QFY17, according to its filing with Bursa Malaysia today.
The group has proposed a single tier final dividend of 10 sen per share for the financial year ended Aug 31, 2018 (FY18), subject to shareholders' approval at the forthcoming annual general meeting.
The world’s largest rubber glove maker said this would bring the total FY18 dividend payout to 17 sen per share, an increase of 2.5 sen or 17% over FY17, representing a net profit payout ratio of 50%.
For the full FY18, Top Glove’s net profit jumped 32% to RM433.62 million, from RM328.57 million; while revenue clocked in 23.6% higher to RM4.2 billion, surpassing the RM4 billion thresholds, versus RM3.41 billion.
Top Glove attributed the favourable results to its continuous pursuit of internal improvements which contributed to reduction in manpower requirements.
Strong demand growth also accounted for higher sales revenue, the filing added.
In a statement accompanying the group’s announcement, Top Glove executive chairman Tan Sri Dr Lim Wee Chai said record results underline the effectiveness of the group's ongoing technology-driven improvement initiatives, focusing on quality and cost efficiency.
“We are very pleased to have achieved another historical high with our best full-year performance yet, especially given the challenging operating environment,” he said.
Going forward, Top Glove said the group will continue to explore inorganic expansion via mergers and acquisitions, as well as new set-ups in related industries, in order to grow faster and more efficiently.
At the same time, Top Glove is continuing to pursue strategic expansion to ensure it is well-positioned to meet robust global demand for gloves and achieve its ambitious Fortune Global 500 dream.
“In progress is the expansion of several existing facilities: F32 (Phases 1 & 2 to be completed early and end 2019 respectively); F33 (to be completed early 2019); and F5A (to be completed end 2019). Meanwhile, its newest factory F8A in Thailand is scheduled to be operational [by] early 2020,” the filing said.
By 2020, Top Glove is projected to have 746 production lines and a production capacity of 69.1 billion gloves per annum.
Meanwhile, in a separate filing, Top Glove also proposed to undertake a bonus issue of 1.28 billion new ordinary shares in Top Glove on the basis of one bonus share for every existing share held on the entitlement date, which was approved at the extraordinary general meeting held on Oct 10.
At 3.35pm, Top Glove’s shares rose two sen or 1.9% to RM10.7, giving it a market capitalisation of RM13.27 billion.