Hartalega’s 4Q net profit surges to RM1.12b, dividend 17.7c a share

TheStar Tue, May 04, 2021 02:41pm - 4 days ago

Hartalega chief executive officer Kuan Mun Leong (pic) said global demand for medical supplies including nitrile gloves is expected to remain elevated due to new waves of Covid-19 cases.

KUALA LUMPUR: Glove manufacturer Hartalega Holdings Bhd’s net profit surged to RM1.12bil in the fourth quarter ended March 31,2021 and jumped to RM2.88bil for the financial year.

Announcing the super-normal profits on Tuesday, it said profit before tax (PBT) for 4Q rose to RM1.51bil on the back of a revenue of RM2.29bil.

For FY21, its PBT increased to RM3.82bil while revenue rose to RM6.69bil.

As a result of the group’s strong performance, the board declared a third interim single tier dividend of 17.70 sen per share for its FY21, with the entitlement date on May 24 and payable on June 9. This will bring total dividends to date for FY21 to 31.20 sen per share.

Hartalega is the largest producer of nitrile gloves in the world and exports to over 60 countries

Its CEO Kuan Mun Leong said, “While vaccination programmes have commenced, countries across the world have unfortunately seen new waves of Covid-19 cases, particularly in India, South America, the Middle East and Southeast Asia.

“As such, global demand for medical supplies including nitrile gloves is expected to remain elevated. Heightened demand growth will further be driven by the structural step-up in demand, on the back of increased glove usage from emerging markets with low glove consumption per capita and increased hygiene awareness, establishing a new baseline for the industry.”

“Against this backdrop, we are committed to fulfilling our critical role in the healthcare value chain by continuing to deliver our high-quality gloves to safeguard frontliners across the globe.

“Moving forward, we are focused on our expansion plans. Plants 1 to 6 of our Next Generation Integrated Glove Manufacturing Complex (NGC) are fully completed and we have commissioned six out of 10 lines for Plant 7, which will have an annual installed capacity of 2.7 billion pieces of gloves once fully completed, ” he said.

He said construction of its next expansion phase of the NGC 1.5 is also underway, which will see the addition of four production plants contributing 19 billion pieces of gloves to our annual installed capacity.

This will see the group’s annual installed capacity increase to 63 billion pieces over the next two to three years.”

“With these expansion plans firmly on track, we remain well-positioned to cater to global demand growth for our high-quality nitrile gloves, ” Kuan said.

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