Hartalega Holdings Berhad (Hartalega), the world’s largest synthetic glove manufacturer, recorded a profit after tax (PAT) of RM113.1 million for its third quarter ended 31 December .
This represents a 70.4% hike compared with RM66.4 million in the previous year’s corresponding quarter. Profit before tax (PBT) grew by 77.3% to RM138.9 million from RM78.3 million in the same quarter last year, while revenue rose by 32.2% to RM603.1 million.
For the nine-month period ended 31 December 2017, the Group posted an improved PAT of RM323.3 million, reflecting a 66.7% increase compared with RM193.9 million in the previous year’s corresponding period. PBT jumped to RM391.8 million while revenue grew by 38.1% to RM1.78 billion.
Earnings per share (EPS) for the quarter under review was 6.85 sen, compared with 4.03 sen in the previous year’s corresponding quarter. For the nine-month period, EPS was 19.56 sen compared with 11.80 sen in the same period last year. Net assets per share was RM1.17 as at 31 December 2017.
As a result of this strong performance and in line with its commitment to enhancing shareholder value, the Board declared a second interim dividend of 4 sen per share single tier for its financial year ending 31 March 2018, as per the entitlement date on 9 March 2018 and payable on 28 March 2018.
Reflecting Hartalega’s commitment to provide shareholders with a strong and stable flow of yields, the Group instituted a revision to the dividend policy. Effective from the Group’s 2018 financial year, Hartalega will be distributing a minimum of 60% of the Group’s annual net profit to shareholders, an increase from the current policy to distribute a minimum of 45%.
To further enhance liquidity as well as reward shareholders for their continuous support, the Group is proposing a bonus issue. This bonus issue is on the basis of one bonus share for every one existing share held by shareholders on the register at an entitlement date that will be determined later.
Kuan Mun Leong, Managing Director of Hartalega Holdings Bhd, said, “Our strategy which we put in place several years ago is indeed bearing fruit. We have timed the market well and this is reflected in our increased sales volume and higher average selling prices for the quarter under review. These were the driving factors which enabled us to deliver strong top and bottom line results.”
“Prospects remain bright with nitrile gloves commanding 61% of Malaysian rubber glove exports. Robust demand is expected to continue, particularly as Chinese vinyl glove producers are facing challenges in light of stricter environmental laws under China’s anti-pollution drive.”
“Our Next Generation Integrated Glove Manufacturing Complex (NGC) is well on schedule to meet growing demand. We have completed commissioning of Plant 4 with all 12 production lines operational and construction has commenced on Plant 5. In addition to this, we aim to launch our world-first non-leaching antimicrobial nitrile examination gloves by the second quarter of 2018.”
“Moving forward, we are confident that the NGC coupled with our product innovations will continue to drive the Group forward and strengthen our earnings potential,” concluded Kuan.