PETALING JAYA: Hartalega Holdings Bhd’s net profit soared 29.6% to RM124.87 million for the first quarter ended June 30 compared with RM96.39 million, driven by higher sales volume and additional production capacity.
The glove manufacturer said in a filing with the stock exchange that lower costs of nitrile, chemical and upkeep of plant and machinery also contributed to the higher earnings.
It said prospects for the rubber glove manufacturing sector remain strong with increasing demand arising from switching trends towards nitrile glove.
In meeting the rising demand, Hartalega NGC began commissioning Plant 5 in August 2018 with construction of Plant 6 to follow. Each plant will have annual installed capacity of 4.7 billion pieces.
“A new plant – Plant 7 is also in the expansion pipeline – will tailor to small orders and focus more on specialty products. Plant 7 will have an annual installed capacity of 2.6 billion pieces.”
The group is also working on securing Federal Drug Administration (FDA) approval for US market. The antimicrobial gloves will be priced competitively to encourage better take-up.