This article first appeared in The Edge Financial Daily, on May 4, 2016.

KUALA LUMPUR: Hartalega Holdings Bhd’s net profit for the fourth financial quarter ended March 31, 2016 gained 12.3% to RM61.72 million from RM54.97 million a year earlier, driven by its continued capacity expansion.

Quarterly revenue ballooned 31% to RM400.43 million, from RM305.11 million a year ago, its bourse filing showed.

The world’s largest synthetic glove manufacturer also declared a third interim dividend of two sen per share, payable on June 23. This brings the full-year dividend to eight sen per share.

For the financial year 2016 (FY16) ended March 31, 2016, its net profit was up 22.8% to RM257.6 million, from RM209.73 million in FY15.

Cumulative revenue jumped 36.4% to RM1.5 billion, from RM1.1 billion.

Hartalega managing director Kuan Mun Leong said the group had increased its production capacity significantly, having successfully completed Plant 1 and 2 of the Next Generation Glove Manufacturing Complex (NGC).

Hence, despite heightened competition and pricing pressures, given the robust global demand, it is confident of tapping into the strong prospects for nitrile gloves, Kuan said in a statement yesterday.

Hartalega is also well positioned to capitalise on opportunities in emerging markets such as China and India, where consumption per capita is relatively low, he noted.

“As the NGC progresses with construction of Plant 3 and 4, we will continue to unlock potential for the group. We have strategically mapped out our capacity expansion to grow in stages, in tandem with market demand,” he said.

Aside from boosting capacity, Kuan said the group is also increasing efficiencies and productivity via innovation and technology.

“With these proactive efforts in place, we are confident [that] we will be able to maintain our leadership position in the nitrile glove segment and deliver growth in the coming financial year,” he concluded.