KUALA LUMPUR (Feb 12): Hartalega Holdings Bhd, the world’s largest nitrile glove manufacturer, saw net profit rise 6% to RM119.76 million in the third financial quarter ended Dec 31, 2018 (3QFY19) from RM113.02 million a year ago, on stronger demand for nitrile gloves and higher average selling price, coupled with growth in sales volume of 9.6%.

This resulted in a higher earnings per share of 3.6 sen for 3QFY19 compared with 3.43 sen for 3QFY18.

Quarterly revenue also grew 19.9% to RM723.39 million from RM603.14 million a year ago. 

The group also declared a second interim dividend of 2.2 sen per share for the financial year ending March 31, 2019 (FY9), payable on March 28. 

For the cumulative nine months (9MFY19), Hartalega's net profit rose 13% to RM364.84 million from RM322.75 million a year ago, while revenue was up 19.9% to RM2.14 billion from RM1.79 billion in 9MFY18.

Going forward, Hartalega managing director Kuan Mun Leong expects the challenging business environment to persist, given heightening competition and cost increases such as the minimum wage hike, higher natural gas tariff and additional costs associated with social compliance.

“We remain optimistic on the long-term prospects for the group. The first four plants of our Next Generation Integrated Glove Manufacturing Complex are fully operational and we have commissioned six out of 12 lines for Plant 5, with the remaining lines set to come onstream progressively.

"Meanwhile, construction of Plant 6 is on track and construction of Plant 7 is scheduled to commence in May this year," he added.

Kuan believes that the group’s efficiency will continue to improve as it embarks on building new plants, which will better position it against the competitive landscape.

"At the same time, our expansion plan is cognisant of maintaining a healthy balance in supply and demand," he said. Nitrile glove now accounts for 63% of Malaysian rubber glove export.

“In addition, following the launch of our latest innovation, the world-first antimicrobial glove, we have received orders from clientele in 10 countries to date. We expect to continue gaining momentum and see strengthening market share as market acceptance increases,” Kuan added.

Hartalega shares closed down four sen or 0.73% at RM5.45 today, with 4.98 million shares done, bringing a market capitalisation of RM18.17 billion.