KUALA LUMPUR (June 18): Top Glove Corp Bhd's share price fell by as much as 33 sen or 6.6% to RM4.67 today after the group reported lower quarterly profits.
At 3pm, the glove maker's share price was down 32 sen or 6.4% at RM4.68. It was the top loser on Bursa Malaysia with 7.95 million shares traded.
Top Glove's net profit for the third quarter ended May 31, 2019 fell 36.5% to RM74.67 million from RM117.57 million a year ago, on the back of a surge in the price of natural rubber latex.
Earnings per share fell to 2.92 sen from 4.64 sen, the group said in a filing to Bursa Malaysia.
Revenue for the quarter rose 8.1% to RM1.19 billion from RM1.10 billion a year ago, backed by growth in sales volume.
Top Glove declared a first interim dividend of 3.5 sen per share, to be paid on July 16.
For the nine months ended May 31, net profit fell to RM290.51 million from RM332.03 million in the previous year's corresponding period. However, nine-month revenue was higher at RM3.61 billion against RM3.00 billion a year ago.
In a separate statement, Top Glove executive chairman Tan Sri Lim Wee Chai said the glovemaker will continue to focus its resources on improving product quality, cost structures and process efficiency, through the adoption of artificial intelligence, digitalisation, advanced technology and research and development, rather than on external factors which are not within its control.
"As our product is closely linked with a commodity, short-term volatility is to be expected, which may affect our margins during certain financial quarters.
"However, this is only in the interim. In our business, we expect to perform better in the following quarter and over the longer term," he said.
Lim said Top Glove is well-positioned to cater to global glove demand, which is projected to grow by at least 10% annually, and will continue expanding its operations.