KUALA LUMPUR (Aug 9): Hartalega Holdings Bhd posted net loss of RM52.47 million in its first quarter (1Q) ended June 30, 2023 versus net profit RM88.28 million a year earlier as revenue for the period halved to RM440.04 million from RM845.67 million.

Loss per share was 1.54 sen compared to earnings per share of 2.58 sen previously.

The glovemaker did not declare any dividend for the quarter.

On a quarter-on-quarter basis, the net loss narrowed from a net loss of RM302.76 million on the back of revenue of RM515.74 million.

In a separate statement, Hartalega said it continued to be impacted by the challenging market environment in its first quarter.

It explained this was mainly due to lower average selling prices and reduced sales volume compared with the previous financial year, against the backdrop of the continued oversupply situation in the glove sector and supply chain inventory adjustment, as well as higher operating costs.

Hartalega chief executive officer Kuan Mun Leong said current headwinds are set to persist, with the ongoing market imbalance, aggressive competition by regional players, and elevated operating costs impacting margins.

He said the average selling price for rubber gloves remains very competitive amid minimal success with the incremental cost passthrough.”

“Despite these challenges, our fundamentals are strong.

“As a group that has successfully withstood various pressures over the past 35 years, it is in our DNA to chart our way to emerge more resilient. In line with this, our 5-Year Strategic Plan will guide us through in contending with the various challenges we are faced with,” he said.

Kuan said this includes the decommissioning of our Bestari Jaya facility which is currently underway, to consolidate our operations at Hartalega’s Next Generation Integrated Manufacturing Complex (NGC) in Sepang.

“Targeted to be completed by the first quarter of calendar year 2024, this is set to enhance the Group’s operational and cost efficiencies, boosting our overall competitiveness moving forward,” he said.

At the  midday break, Hartalega shed 0.47% or one sen to RM2.13 with 9.89 million shares traded.