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Top Glove FY14 Pre-Tax Profit Falls Amid Intense Competition

KUALA LUMPUR, Oct 14 (Bernama) — Top Glove Corporation Bhd’s pre-tax profit fell to RM214.74 million for the financial year ended Aug 31, 2014 from RM242.20 million in the previous year amid intense competition in the nitrile glove segment.

Revenue eased to RM2.276 billion from RM2.313 billion previously.

In a statement, Chairman Tan Sri Lim Wee Chai said the business environment during the financial year was challenging amid a 16 per cent rise in electricity costs.

He said the group’s bottom line was affected by the 19 per cent increase in natural gas prices, with the full impact felt in the recent quarter.

Against this backdrop, Lim said there are further improvements that can be made operationally.

“We are determined to further step up our efforts in quality enhancement and cost saving to deliver a better performance,” he said.

Lim said the present business climate, coupled with increased merger and acquisition opportunities, would enable the group to expand faster via the inorganic route, in addition to the organic expansion being pursued.

The board of directors has proposed a final single-tier dividend of nine sen per share, subject to shareholders’ approval, at the forthcoming annual general meeting, bringing the total payout for the year to 16 sen per share.

Going forward, Lim expressed optimism about prospects for the company and the industry amid the strong demand for rubber gloves.

Meanwhile, the world’s biggest glove maker has responded to the government’s call to donate some 20.9 million gloves to be shipped to West African nations hard-hit by the Ebola virus.

— BERNAMA

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