Top Glove warns of weak demand as profits collapse

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Newly manufactured gloves are pictured inside the Top Glove factory in Shah Alam, Malaysia, August 26, 2020. REUTERS / Lim Huey Teng / File Photo

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December 10 (Reuters) – Malaysian group Top Glove (TPGC.KL) said on Friday that its quarterly profits were almost wiped out, adding that it expected the near-term business environment to be difficult.

The world’s largest manufacturer of medical gloves posted net profit of 185.7 million ringgit ($ 44.04 million) in the September-November quarter, down 92% from 2.36 billion ringgits a year ago.

Turnover fell 67% to 1.58 billion ringgit, according to its stock exchange record.

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The company said average selling prices and demand have returned to normal following the global rollout of the coronavirus vaccine, as customers remain cautious about restocking orders, pending further decline in prices. price of gloves.

“The group has experienced a decline in sales volume in the current quarter, which has been attributed to increased competition and supply, due to the expansion of existing players and the entry of new players,” Top Glove said.

He added that he had gradually resumed exports to the United States and expected sales volume to improve in the coming quarters.

Last year, U.S. Customs banned imports of Top Glove’s products from Malaysia over charges of forced labor in its operations, but lifted the ban in September after a review showed Top Glove addressed all indicators of forced labor.

($ 1 = 4.2170 ringgit)

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Reporting by Sayantani Ghosh in Singapore and Liz Lee in Kuala Lumpur; Editing by Clarence Fernandez

Our Standards: Thomson Reuters Trust Principles.


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