Top Glove Corporation Bhd or “Top Glove” today announced  its financial results for the First Quarter (1QFY2025) ended 30 November 2024, marking a pivotal  milestone with a jump in Profit After Tax, starting the new financial year 2025 on a positive note. 

Against a backdrop of market pressures and intense competition, Top Glove delivered Sales Revenue of  RM886 million, an impressive growth of 80% year-on-year. Very notably, the Group achieved a Profit  After Tax of RM17 million. Meanwhile, Sales Volume surged by 104% versus 1QFY2024. 

The Group’s rebound was fuelled by robust and continual order inflows, driving a higher utilisation rate  of 66% across running factories, while enhancing cost efficiencies. Spurring the strong growth in Sales  Volume was continual glove replenishment activity, as well as increased inflow of U.S. orders ahead of  the 50% tariff on glove imports from China, with further increases in Sales Volume expected to follow.  Also contributing to the better performance were healthier margins from continual glove replenishment  activity. Its recovery was further supported by the Group’s ongoing quality enhancement and cost  optimisation initiatives, in line with its steadfast commitment to operational excellence. Additionally,  the strengthening of the U.S. Dollar (USD) against the Malaysian Ringgit (MYR) during the quarter in  review helped to improve margins. 

Top Glove had in August and September 2024 revised its Average Selling Prices (ASPs) upward,  following higher raw material costs and a weaker USD in 4QFY2024. The effects of these price  adjustments came in only towards the end of 1QFY2025, with the full impact expected to be reflected  in 2QFY2025. 

Raw material prices remained mixed quarter on quarter, with average natural latex concentrate prices  increasing by 4% to RM6.88/kg, while average nitrile latex prices were down 3% to USD0.94/kg. 

Mr Lim Cheong Guan, Managing Director of Top Glove remarked, “Our exceptional increase in profitability is a significant landmark on our journey of recovery and growth. This achievement is  credited to encouraging recovery in market demand which has significantly boosted sales orders, our  ability to command ASPs and cost pass through, and continuous efforts to improve our glove quality  and cost efficiency. I would like to extend my heartfelt gratitude to our dedicated employees for their  unwavering commitment and hard work which have laid a solid foundation for a stronger and more  resilient future”. 

Corporate Developments 

1. a) Proposed Issuance of Senior Islamic Medium Term Notes (Senior Sukuk Wakalah) 

Top Glove announced the proposed issuance of 5-year Senior Sukuk Wakalah with a nominal value of  RM800 million, which has been rated by Malaysian Rating Corporation Berhad (MARC). This is in  preparation for the redemption of the Perpetual Sukuk in February 2025, which will utilise proceeds of  RM800 million raised under the said Senior Sukuk Wakalah, as well as RM380 million of the Group’s  cash. 

1. b) Proposed 1-For-20 Bonus Issue of Warrants 

The exercise price for the Group’s proposed bonus issue of warrants has been determined at RM1.27  and SGD0.38 per warrant. The Group had earlier announced a bonus issue of up to 405,964,951  warrants on the basis of 1 warrant for every 20 existing Top Glove shares. The Entitlement Date is  tentatively in early February 2025, while the listing of and quotation for the Warrants on the Main  Market of Bursa Securities and SGX-ST is in mid February 2025. The warrants are exercisable anytime  within 5 years from the date of issuance, with the proposed bonus issue subject to shareholders’  approval at the upcoming AGM on 15 January 2025. 

Sustainability Achievements 

1. a) Sustainability Streak: Marking 6 Straight Years on the Dow Jones Sustainability Indices  

Underscoring its sustainability leadership, Top Glove secured its 6th consecutive year on the prestigious  Dow Jones Sustainability Indices (DJSI) 2024, under the Emerging Markets category. Top Glove  scored among the top 3 percent out of 274 companies assessed in the Health Care Equipment &  Supplies Industry in the S&P Global Corporate Sustainability Assessment, as at 18 December 2024.  This recognition amply displays its commitment to sustainability, emphasising key areas such as  corporate governance, supply chain management, innovation, environmental reporting, climate strategy, 

human rights, human capital development and customer relationship management, the critical criteria  evaluated by the DJSI. Additional details on this accomplishment are available here. 

1. b) Publication of Sustainability Report 2024  

As part of its ongoing commitment to transparency and sustainability, the Group on 12 December 2024 published its Sustainability Report 2024, highlighting its achievements, initiatives and future plans on  its environmental, social, and governance (ESG) journey. Stakeholders are invited to explore the report  here, which demonstrates its dedication to building a sustainable future for both its business and the  planet. 

The End of Our Setback; The Start of Our Comeback 

Going forward, the outlook for the Group remains positive, with orders continuing to flow in as the  glove industry recovers steadily. Its unwavering focus on operational excellence, alongside robust  industry fundamentals and increased levels of health and hygiene awareness post pandemic, are also  expected to drive continual demand growth. Additionally, Top Glove is well positioned to benefit from  trade diversions resulting from U.S. tariffs on China produced gloves, which are creating new  opportunities in key markets, the impacts for which are expected to be felt more substantially from  2QFY2025 onwards. In this regard, the Group will proactively diversify risks across its countries of  operations in Malaysia, Thailand and Vietnam to mitigate the geopolitical situation which continues to  escalate and remain unpredictable. Aligning with its drive for long term growth and success, the Group  will also continue to integrate sustainable practices into every aspect of its operations. With its recovery realised, the Group is poised to sustain its upward momentum and deliver increasingly stronger results  in the coming quarters. 

“Our spike in profitability in 1QFY2025 is commendable but more importantly, signals the start of an  exciting journey to make Top Glove great again. We are highly encouraged by the steady inflow of orders and the opportunities arising from shifting global trade dynamics. These trends, coupled with our  quality and cost efficiency initiatives, position us well for accelerated growth towards reestablishing our  leadership position. As we move forward strongly, we remain steadfast in delivering value to our  stakeholders and seizing the opportunities ahead, with every confidence that the best is yet to come”, Mr Lim concluded. 

Twitter