KUALA LUMPUR (Aug 26): Supermax Corp Bhd (KL:SUPERMX) on Tuesday posted a smaller net loss in the fourth quarter compared to a year ago, as cost rationalisation efforts helped cushion the impact of declining revenue.

Net loss for the three months ended June 30, 2025 (4QFY2025) was RM67.04 million or 2.17 sen per share from RM128.52 million or 4.99 sen per share in the same quarter a year ago, the glove manufacturer announced in a bourse filing.

This marked the group’s 11th consecutive quarterly loss since 2QFY2023.

Quarterly revenue dropped 13.9% year-on-year (y-o-y) to RM154.75 million from RM179.64 million, dragged by lower sales volumes in key markets, namely the US, where customers were holding high inventory levels following a surge in imports by Chinese glove makers ahead of a tariff hike. 

The group also faced order deferments amid uncertainties over US trade policies, coupled with a stronger ringgit against the US dollar, and a two-week production halt following a gas pipeline explosion in Putra Heights.

For the full year, Supermax narrowed its net loss to RM160.40 million from RM175.62 million in FY2024. Revenue, however, rose 21% y-o-y to RM781.85 million from RM646.17 million.

No dividend was declared for the latest quarter or the full financial year, marking the second consecutive year the group has skipped payouts. The last time Supermax paid a dividend was in FY2023, when it declared 3.5 sen per share.

Supermax noted that the glove industry continues to face intense competition post-pandemic amid global oversupply, low utilisation and depressed average selling prices.

Malaysian players, it said, are further challenged by high energy and labour costs.

“To navigate these headwinds, Supermax is increasing investment in automation, gradually adopting the latest robotics and AI-based technologies across its plants,” it said.

Meanwhile, the company’s new plant in Texas, which has achieved ISO 9001 and ISO 13485 certifications, has begun test runs and offers a strategic foothold in the US market, it added.

Shares in Supermax settled down half a sen or 1.01% at 49 sen on Tuesday, giving the company a market capitalisation of RM1.60 billion. The counter has dropped over 60% since the beginning of the year.