Comfort Gloves closes FY20 on stronger footing as revenue climbs

Comfort Gloves closes FY20 on stronger footing as revenue climbs
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KUALA LUMPUR (March 23): Comfort Gloves Bhd reported a 9% rise in net profit to RM10.24 million in its fourth quarter ended Jan 31, 2020 (4QFY20), from RM9.39 million in the same period last year, as it recorded stronger revenue.

Revenue grew 6% to RM33.18 million from RM27.89 million, its stock exchange filing today showed.

For the entire FY2020 ended Jan 31, its net profit jumped 19% to RM33.18 million from RM27.89 million in FY2019, as net profit margin improved from 6% to 7%, while revenue rose 8% to RM510.74 million from RM474.03 million.

The group also attributed the stronger yearly profit to an increase in productivity.

Comfort Gloves, which focuses on natural and synthetic premium specialty gloves, said prospects for the rubber glove manufacturing sector remain strong, with increasing demand arising from switching demand trends towards nitrile glove.

“As overall demand for nitrile gloves increases, the market is seeing increased segmentation and differentiation, leading to an increased demand for specialty gloves. Through dedication to process rationalisation and improving operational agility, the group is confident in capturing greater market share and strengthening margins,” it said.

It added that it will continue to emphasize on research and development as the key method to expanding its market offerings and growing its sales.

Shares of Comfort Gloves closed 3.5 sen or 5.4% lower at 61 sen today, giving it a market capitalization of RM355.6 million.