KUALA LUMPUR: Top Glove Corp Bhd posted a net profit of RM30.3 million for the second quarter of the financial year 2025 (2QFY25), rebounding from a net loss of RM51.2 million in the same period last year.
The company's revenue also jumped 61 per cent to RM883.6 million from RM550.3 million, driven by a steady increase in glove orders amid recovering global demand and trade diversions following US tariffs on Chinese glove exports.
"The ongoing quality improvement, along with higher utilisation rates from increased orders, resulted in better production and cost efficiency, contributing to strengthening profitability," the glove maker said in a Bursa Malaysia filing.
Top Glove said it remains optimistic about its prospects, as continually improving market conditions drive sustained demand growth.
"With this, continued buildup in its order book is anticipated, fuelled by strong order inflows. Moreover, trade rerouting stemming from US tariffs is expected to lead to higher utilisation rates and stronger average selling prices (ASPs), with US orders projected to resume in the coming months when frontloaded stocks deplete.
"At the same time, the group remains vigilant in addressing competitive pressures, particularly in non-US markets such as Europe, where Chinese manufacturers' aggressive nitrile glove pricing strategies may pose challenges," it added.
However, the glove maker said this will be mitigated by the group's diversified product portfolio and its ability to switch between natural rubber and nitrile glove production lines, where required.
"Additionally, glove industry fundamentals are unchanged; gloves remain an essential, single-use item in the healthcare, industrial and food and beverages (F&B) sectors with no viable replacement and global demand is set to increase, more so given the elevated health and hygiene awareness post-pandemic," it adds.
Top Glove managing director Lim Cheong Guan said the improving conditions in the glove industry offer substantial opportunities, and the company is well positioned to capitalise on them.
"We are mindful there may be challenges ahead and will continue to pursue quality and cost-efficiency initiatives towards ensuring we stay competitive.
"We also remain deeply committed to environmental, social and governance (ESG) principles, recognising that sustainable business practices are integral to long-term success," he adds.
Lim expressed confidence that with continuous improvements, a solid ESG foundation, and unwavering support from its team, the company can maintain its growth trajectory and create long-term value for stakeholders.
