Hartalega Holdings Berhad, the nitrile glove manufacturer, delivered improved results for its third quarter ended 31 December 2018, with a profit after tax (PAT) of RM119.3 million, up by 5.5 per cent from RM113.1 million in the previous year’s corresponding quarter.

Profit before tax (PBT) grew by 8% to RM150 million from RM138.8 million in the same quarter last year, while revenue rose to RM723.3 million, marking a 19.9% jump.  

For the nine-month period ended 31 December 2018, the Group posted a PAT of RM364.8 million, 12.8 per cent higher compared with RM323.2 million in the previous year’s corresponding period. PBT jumped to RM438.1 million while revenue grew to RM2.1 billion.

Earnings per share (EPS) for the quarter under review was 3.60 sen, compared with 3.43 sen in the previous year’s corresponding quarter. For the nine-month period, EPS was 10.97 sen compared with 9.78 sen in the same period last year. Net assets per share was RM0.66 as at 31 December 2018. 

As a result of this improved performance, the Board declared a second interim dividend of 2.2 sen per share single tier for its financial year ending 31 March 2019, as per the entitlement date on 8 March 2019 and payable on 28 March 2019.

Hartelega Holdings Berhad managing director, Kuan Mung Leong said, “We are pleased to have delivered improved earnings despite tough market conditions.

“We expect the challenging business environment to persist, given heightening competition and cost increases such as the minimum wage hike, higher natural gas tariff and additional costs associated with social compliance.”

“We remain optimistic on the long-term prospects for the Group. The first four plants of our Next Generation Integrated Glove Manufacturing Complex are fully operational and we have commissioned six out of 12 lines for Plant 5, with the remaining lines set to come onstream progressively.”

He also further revealed construction of Plant 6 is on track and construction of Plant 7 is scheduled to commence in May 2019.

“The Group’s efficiency will continue to improve as we embark on building new plants, which we believe will better position us against the competitive landscape. At the same time, our expansion plan is cognisant of maintaining a healthy balance in supply and demand.”

“In addition, following the launch of our latest innovation, the world-first antimicrobial glove, we have received orders from clientele in 10 countries to date.

“We expect to continue gaining momentum and see strengthening market share as market acceptance increases,” concluded Kuan.

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