KUALA LUMPUR (Aug 22): Kossan Rubber Industries Bhd’s (KL:KOSSAN) net profit for the second quarter was flattish, despite a temporary production halt following a gas pipeline explosion in Putra Heights in April.

Its net profit for the quarter ended June 30, 2025 (2QFY2025) came in at RM31.2 million, versus RM31.3 million in the same period a year earlier, the rubber glovemaker said in a filing with Bursa Malaysia on Friday.

Revenue for the quarter slipped 11% to RM382.2 million from RM430 million, mainly due to a 10-day production halt in April following gas supply disruption by Gas Malaysia Bhd (KL:GASMSIA) after the pipeline explosion.

Nevertheless, higher average selling prices and lower production costs in both the gloves and cleanroom divisions helped cushion the impact on the bottom line, Kossan noted.

No dividend was declared for the quarter under review.

Looking ahead, Kossan expects its technical rubber products division to sustain growth in the second half of the year, while the cleanroom division is projected to deliver stable performance.

While acknowledging that uncertainties over US tariffs and competition from Chinese manufacturers pose short-term challenges, the group said it will continue to focus on enhancing product quality and optimising costs to strengthen operational resilience.

Backed by a strong balance sheet and agile production model, Kossan said it remains well-positioned to achieve sustainable growth.

For the cumulative six months ended June 30, 2025 (1HFY2025), net profit rose 6.2% to RM66.8 million from RM62.9 million a year ago, despite revenue slipping 1.4% to RM869.5 million from RM881.5 million.

Shares in Kossan gained one sen or 0.8% to end at RM1.23 on Friday, valuing the group at RM3.15 billion. Year to date, the counter has fallen over 56%.