KUALA LUMPUR (Nov 5): No thanks to lower average selling price and increase in packaging and fuel costs, Hartalega Holdings Bhd experienced a 13% drop in its net profit to RM103.87 million in its second financial quarter ended Sept 30, 2019 (2QFY20), from RM120.22 million a year ago.

The lower average selling price dragged the group’s quarterly revenue marginally lower to RM709.42 million, from RM714.24 million in 2QFY19, the nitrile glove manufacturer’s exchange filing today showed.

Despite lower profitability, Hartalega’s board declared its first interim single-tier dividend of 1.8 sen per share in respect of the financial year ending June 30, 2020 (FY20). The dividend is payable on Dec 27.

For the first half of FY20 (1HFY20), Hartalega’s net profit came lower at RM197.93 million, down by 19% compared with RM245.09 million in the same period a year ago. Cumulative revenue, meanwhile, dropped 5.3% at RM1.35 billion, against RM1.42 billion in 2HFY19.

Hartalega in its filing said the group will continue with its next-generation complex (NGC) capacity expansion plans, in line with growing global rubber glove demand, besides taking steps to address rising operating cost.

Shares of Hartalega closed seven sen or 1.26% lower today at RM5.47, bringing a market capitalisation of RM18.45 billion. The stock has fallen 10.9% or 67 sen year-to-date.