KUALA LUMPUR (Nov 30): Comfort Gloves Bhd’s net profit for the third quarter ended Oct 31, 2020, stood at RM90.3 million — its highest ever — up 1,119% from RM7.4 million in the previous year’s corresponding quarter amid higher sales volume and average selling prices.

Revenue for the quarter jumped 106% to RM276.7 million from RM134.5 million a year earlier.

Earnings per share shot up to 15.5 sen from 1.3 sen as a result.

In its filing with the bourse, Comfort Gloves attributed its net profit growth to higher sales volume and significantly higher average selling prices and better economies of scale, which resulted in improved margin of 33% versus 6% previously.

No dividends were declared for the quarter.

On a quarterly basis, net profit more than doubled from RM42.8 million or 7.34 sen per share while revenue was up 39.78% from RM197.95 million.

For the nine months to Oct 30, net profit surged 552% to RM149.5 million or 25.64 sen per share from RM22.9 million or 4.01 sen per share a year earlier, while its cumulative revenue increased 69% to RM627.5 million from RM372.1 million.

In its prospects, the group said the emphasis placed on hygiene and sanitation brought about by Covid-19 has led to an increase in demand for its specialty premium gloves.

“Based on discussion and feedback from our partners worldwide, the group is of the opinion that this will become a new market requirement that will shape all future glove demand globally. The emphasis on hygiene and sanitation will also not be reduced in the event a vaccine becomes generally available,” said Comfort Gloves.

To meet the increase in demand, the group said it has optimised and streamlined its existing operations to increase productivity and output, with additional production lines commissioned.

Notwithstanding Covid-19, the group said gloves are still a necessity for medical professionals, food servers, mechanics and various at-home uses including gardening, cleaning, and safety precautions for the immunocompromised.

“Looking forward, the group is well prepared to capitalise on market opportunities to grow and succeed for many years to come,” it said.

Comfort Gloves rose 14 sen or 3.6% to close at RM3.99, giving a market capitalisation of RM2.33 billion.