This article first appeared in The Edge Financial Daily, on November 6, 2015.

KUALA LUMPUR: Glove maker Hartalega Holdings Bhd’s net profit for the second financial quarter ended Sept 30 (2QFY16) jumped 25.44% to RM60.41 million or 3.69 sen per share, from RM48.16 million or 3.13 sen per share a year ago, on higher contribution from its next generation complex’s new production lines.

It saw a 37.8% jump in 2QFY16 revenue to RM379.35 million, from RM275.24 million in 2QFY15, due to the strengthening of the US dollar against the ringgit and production capacity expansion, its filing with Bursa Malaysia yesterday showed.

The group declared its first interim dividend of two sen per share for FY16, payable on Dec 30.

For the first half of FY16 (1HFY16), Hartalega recorded a net profit of RM123.09 million or 7.51 sen a share, up 16.96% from RM105.25 million in 1HFY15, in line with the group’s continuous expansion in production capacity and increase in demand.

Revenue for 1HFY16 also rose 26.23% to RM699.86 million from RM554.44 million a year ago, thanks to its expansion efforts and a stronger greenback against the ringgit.

On prospects, Hartalega said the group is optimistic it will achieve its internal growth target for FY16.

“On the back of a strong demand for nitrile gloves, we are confident that Hartalega’s profit margins will remain above the industry average,” it said.