Comfort Gloves 2Q profit down 32% q-o-q to RM148.82m, declares two sen dividend

Comfort Gloves 2Q profit down 32% q-o-q to RM148.82m, declares two sen dividend
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KUALA LUMPUR (Sept 21): Comfort Gloves Bhd's net profit in the second quarter ended July 31, 2021 (2QFY22) fell 32.09% to RM148.82 million from its record RM219.13 million in 1QFY22, hit by its products' lower average selling prices (ASPs).

The weaker ASPs more than offset higher volume sold in the period as quarterly revenue fell 6.84% to RM504.23 million from RM541.24 million.

In its results filing, Comfort Gloves also attributed the weaker bottom line performance to provision of staff incentive in the quarter.

Quarterly earnings per share fell to 25.64 sen, from 37.75 sen. Comfort Glove declared a second interim dividend of two sen per share, bringing its half-year dividend to six sen, from 1.5 sen in the same period last year.

On a year-on-year basis, Comfort Gloves' net profit climbed 247.74% from RM42.8 million, with a much-improved margin as revenue rose 154.72% from RM197.95 million.

For the six-month period ended July 31, 2022 (1HFY22), Comfort Gloves' net profit stood at RM367.96 million or 63.39 sen per share, up 522.22% from RM59.14 million or 10.14 sen per share a year ago.

Half-year revenue rose 197.97% to RM1.04 billion, from RM350.86 million.

Joining the other glovemakers, Comfort Gloves is proceeding with its ongoing addition of seven double dipping lines by end-FY22, having added four lines in the last quarter. “The group expects that the global demand for gloves will continue to rise in the long term since the outbreak of [the] Covid-19 pandemic,” it said.

Shares of Comfort Gloves fell six sen or 4.38% to RM1.31 at noon market break today, valuing the group at RM868.6 million. 

Joyce Goh