KUALA LUMPUR (Feb 10): Hartalega Holdings Bhd (KL:HARTA) said on Tuesday its net profit rose 62% in the December-end quarter from a year earlier as tax credit offset a slump in revenue.

Net profit in the three months ended Dec 31, 2025 (3QFY2026) was RM31.64 million compared to RM19.51 million in the same quarter a year earlier, the world’s biggest nitrile glove maker by volume said in an exchange filing.

The company booked RM2.77 million tax credits from utilisation of unabsorbed capital allowances and business losses brought forward from the prior year and certain tax-exempt income, which helped to offset a 29% year-on-year decline in revenue to RM527.25 million during the quarter.

“In the near term, however, market conditions remain challenging,” Hartalega said, flagging uncertainties surrounding US tariff policies and competition from Chinese rivals in non-US markets, particularly in Europe and emerging markets, amid an industry glut.

The industry is grappling with a massive supply glut as rivals from China set up shop and ramp up their productions in other Southeast Asian countries to dodge US tariffs. A deluge of Chinese-made gloves in non-American markets has also added to the pressure faced by Malaysian manufacturers.

The ringgit, meanwhile, has appreciated some 10% last year against the US dollar quoted in invoices, and sales of gloves are almost entirely denominated in the greenback.

“Nevertheless, our continued efforts to strengthen automation will bear significant results on our production efficiency, ensuring the group remains cost competitive and well-positioned to drive sustainable growth,” Hartalega chief executive officer Kuan Mun Leong said in a statement.

Net profit for the cumulative three quarters of the financial year totalled RM62.55 million, just 4% higher when compared to the same period a year earlier, amid higher tax expense.

Revenue for the nine-month period fell 18% year-on-year to RM1.62 billion amid lower sales volume and foreign exchange impact as stronger ringgit reduced US dollar receipts.

No dividends have been declared so far in the current financial year. 

Shares of Hartalega were up two sen at 88 sen, valuing the company at about RM3 billion ahead of the results announcement.