COMFORT GLOVES LOGS ANOTHER RECORD-HIGH NET PROFIT OF RM219 MLN IN Q1

KUALA LUMPUR, June 21 -- Comfort Gloves Bhd posted another record-high net profit of RM219.13 million in the first quarter ended April 30, 2021 (Q1 FY2022), surging 1,241 per cent from RM16.34 million in the same period last year.

Revenue also jumped to RM541.24 million from RM152.91 million previously.

In a filing with Bursa Malaysia today, the rubber glove manufacturer attributed the strong performance during the quarter under review to higher sales volume with significantly higher average selling price and better economies of scales that improved the net profit margin to 40 per cent from 11 per cent previously.

Comfort Gloves said it planned to commission seven additional double formers dipping lines, which are expected to be completed towards the end of the financial year ending Jan 31, 2022, from four double formers dipping lines completely commissioned in the quarter under review.

“With all the completed production facility, the group will be capable of producing up to 8.6 billion gloves per annum,” it said.

It said the machine lines are also designed with the capability to produce both latex and nitrile gloves, regardless of specialty or medical gloves.

“The interchangeability of the line enables us to switch production base upon demand dynamics especially there is shortage in supply of natural or synthetic latex. 

“Hence, even without COVID-19, the flexibility of our manufacturing process and customer base outside the medical market has allowed us to effectively expand our market base for specialised industrial use,” it said.

Moving forward, it said it expected global gloves consumption to increase in the long run as a result of the continuing increase in usage of gloves as a protective barrier in the healthcare sector.

It said the consumption would also be supported by the increase in hygiene awareness in non-healthcare sectors such as hospitality, food services and personal care since the outbreak of COVID-19 pandemic.

“Premised on the above, the group believes that barring any unforeseen circumstances, its prospects should be positive moving forward,” it added.

--BERNAMA