KUALA LUMPUR (Feb 23): Kossan Rubber Industries Bhd (KL:KOSSAN) posted a sharp rise in net profit for the fourth quarter ended Dec 31, 2025 (4QFY2025), as improved production efficiencies helped lower costs and offset weaker sales.

Net profit jumped 69% to RM46.7 million, or 1.85 sen per share, from RM27.7 million, or 1.09 sen per share, a year earlier, according to a bourse filing on Monday.

The stronger earnings came despite a 15.1% decline in revenue to RM439.5 million from RM517.9 million, pressured by a stronger ringgit against the US dollar and shipment deferments to January due to port congestion.

Meanwhile, operating expenses fell 17.1% to RM408.08 million from RM494.14 million, lifting the operating profit margin to 10.2% from 7.6% previously.

No dividend was declared for the quarter.

For FY2025, net profit rose to RM151.3 million from RM118.3 million, while revenue slipped to RM1.75 billion from RM1.92 billion.

In terms of outlook, Kossan said the glove industry continues to grapple with global oversupply, as excess capacity and intensified competition — particularly from Chinese manufacturers — redirect exports to non-US markets, keeping prices and margins under pressure.

Against this backdrop, the group said it is pressing ahead with its transformation programme, focusing on automation, digitalisation, and cost optimisation to strengthen efficiency and cost management.

While the stronger ringgit may weigh on revenue in the near term, the group noted that its established foreign exchange hedging mechanisms and prudent financial management help mitigate the impact.

At the same time, Kossan is advancing its sustainability agenda, emphasising matters like transparency and strategic partnerships as customers increasingly prioritise sustainable sourcing and robust ESG compliance.

At the time of writing on Monday, shares in Kossan were up one sen or 1% at RM1.03, valuing the group at RM2.64 billion. Over the past one year, the stock has declined 45.8%.