KUALA LUMPUR (March 20): Top Glove Corporation Bhd (KL:TOPGLOV), the world’s largest natural rubber glove maker, remained in the black for the second consecutive quarter, thanks to a surge in sales.

Net profit for the three months ended Feb 28, 2025 (2QFY2025) was RM30.28 million, compared to a net loss of RM51.2 million over the same period last year, Top Glove said in an exchange filing on Thursday. Revenue surged 61% year-on-year to RM883.65 million, thanks partly to US tariffs on Chinese gloves.

Meanwhile, for the first six months of the year, the group reported a turnaround with a net profit of RM35.76 million while also registering a higher revenue of RM1.77 billion compared with RM1.04 billion in the corresponding period.  

In a statement on Thursday, the group expressed optimism about future prospects, driven by improving market conditions and growing demand.

It expects continued order book growth, supported by strong inflows.

Additionally, trade rerouting due to US tariffs is expected to increase utilisation rates and boost average selling prices, with US orders set to resume once frontloaded stocks are depleted, it added.

The group said it is also focused on managing competitive pressures, especially in non-US markets like Europe, where aggressive pricing by Chinese manufacturers could pose challenges.

“The improving glove industry dynamics present significant opportunities for us, and we are well placed to benefit from them.

“We are mindful there may be challenges ahead and will continue to pursue quality and cost efficiency initiatives, towards ensuring we stay competitive,” said Top Glove managing director Lim Cheong Guan.  

Besides that, Top Glove also noted that on Feb 20, it issued a five-year senior sukuk worth RM800 million to redeem a RM1.18 billion perpetual sukuk, with the issuance attracting 3.3 times oversubscription, reducing financing costs and maintaining a healthy net gearing of 0.13 times.

At the time of writing, Top Glove shares were 2.5 sen or 2.8% lower at 88.5 sen, valuing the company at RM7.27 billion.

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