KUALA LUMPUR (Nov 8): Hartalega Holdings Bhd, the world's largest nitrile glove producer, saw its net profit rise 17.9% to RM71.22 million or 4.34 sen a share for the second quarter ended Sept 30, 2016 (2QFY17), from RM60.41 million or 3.69 sen a share a year ago, in line with its continuous expansion in production capacity and increase in demand.

Revenue also increased 15.2% to RM436.98 million in 2QFY17, from RM379.35 million in 2QFY16 on higher sales volume.

However, the group's operating profit margin reduced to 20.1% in 2QFY17, from 24.7% a year ago, basically due to increase in process chemical and natural gas cost.
 
The group declared a first interim dividend of 2 sen per share for the financial year ending March 31, 2017 (FY17), payable on Dec 29.

For the cumulative six months (1HFY17), its net profit rose 3.5% to RM127.39 million, from RM123.09 million; while revenue jumped 19.9% to RM838.8 million, from RM699.86 million, due to more competitive product selling price.

In a filing with Bursa Malaysia today, Hartalega said the operating profit margin reduced to 19.4% in 1HFY17, from 24.8% in 1HFY16, basically due to increase in process chemical cost, natural gas cost, indirect labour and upkeep of plant and machinery.

On prospects, Hartalega said the global demand for nitrile rubber gloves continued to register healthy growth rate, due to switching momentum from latex to nitrile rubber gloves and increasing healthcare requirements.

It said average selling price has also generally been lower, due to weak raw material price and more competitive product selling price, which along with sustaining demand, will support the group's efforts to open new markets.

Hartalega shares closed 8 sen or 1.7% higher at RM4.78 today, giving it a market capitalisation of RM7.8 billion.