Friday 29 Mar 2024
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KUALA LUMPUR (June 10): Top Glove Corp Bhd shares fell to pre-Covid-19 levels in morning trading on Bursa Malaysia on Friday (June 10) after the glove maker announced disappointing results for its third quarter ended May 31, 2022 (3QFY22). 

The counter opened at RM1.20 on Friday. At the time of writing, Top Glove shares were down 5.74%, or five sen, at RM1.17 — the lowest since Dec 17, 2017, when the stock closed at RM1.15. 

At the current price, Top Glove is valued at RM9.52 billion. About 12.65 million shares changed hands. 

On Thursday (June 9), Top Glove reported a massive drop in net profit for 3QFY22, down 99.25% to RM15.29 million from RM2.04 billion a year ago. Quarterly revenue fell 64.8% to RM1.46 billion from RM4.16 billion. 

For the nine months ended May 31, Top Glove's net profit fell to RM288.56 million from RM7.26 billion a year ago, while 9MFY22 revenue declined to RM4.5 billion from RM14.29 billion. 

This contrasts with its exceptionally strong performance in the corresponding periods of FY21, when the pandemic was at its peak, during which demand and average selling prices were at all-time highs and operating costs were lower, Top Glove said in its filing.

“As the pandemic transitions into an endemic [stage], the industry has been experiencing the effects of the normalisation in terms of demand and average selling price. The resulting softer performance has occurred amidst a convergence of headwinds, with production cost moving upward due to global inflation and as the Russia Ukraine conflict driving up crude oil prices," it said.

Top Glove also expects the challenging business environment to persist in the near term but emphasises the situation is a temporary setback.

Edited BySurin Murugiah
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