This article first appeared in The Edge Financial Daily on November 22, 2019

KUALA LUMPUR: Kossan Rubber Industries Bhd’s third quarter (3Q) net profit slipped 9.18% to RM49.18 million or 3.84 sen a share, from RM54.15 million or 4.23 sen a share a year earlier, on lower average selling prices and higher natural gas costs.

Revenue for the quarter ended Sept 30, 2019 was down 7.43% at RM531.26 million, versus RM573.9 million previously, the glove maker said in a filing with Bursa Malaysia.

For the cumulative nine-month period, Kossan’s net profit was 15.94% higher at RM163.78 million or 12.81 sen per share, from RM141.27 million or 11.5 sen per share last year, while revenue grew 5.69% to RM1.64 billion, from RM1.55 billion.

The improved performance for the period was due to the higher demand growth for the group’s glove products, with higher volume sold (+9.21%) from increased production output, as well as increased manufacturing efficiency and effective cost controls, said Kossan.

On prospects, the group said the management is confident of achieving an improved performance in the final quarter of 2019, on the back of cost control, improvements in manufacturing technology and operating efficiency.

Kossan’s share price eased one sen or 0.24% to RM4.19 yesterday, with a market capitalisation of RM5.36 billion.