KUALA LUMPUR (Feb 24): Supermax Corp Bhd (KL:SUPERMX) posted a sharply wider net loss for its second quarter, weighed down by unrealised foreign exchange losses, lower sales volumes and higher operating costs from its US plant.

Net loss widened to RM58.44 million or 1.90 sen per share for the second quarter ended Dec 31, 2025 (2QFY2026), from RM4.92 million or 0.19 sen per share in the same quarter a year ago, a bourse filing showed.

Revenue for the quarter declined 5.71% to RM187.44 million from RM198.79 million previously as lower sales volumes and the weakening US dollar reduced sales value despite higher average selling prices.

The group said it incurred RM9.12 million in unrealised foreign exchange losses following the depreciation of the US dollar against the ringgit while operating expenses rose as its US plant ramped up operations.

Supermax, which has been in the red since 2QFY2023, did not declare any dividend for the quarter.

For the six months ended Dec 31, 2025 (1HFY2026), net loss widened to RM193.05 million from RM69.55 million a year earlier while revenue fell 7.19% to RM393 million from RM423.44 million.

The group said rising minimum wages, electricity tariffs and raw material costs continued to pressure margins while intensifying competition from China posed further challenges.

As part of its internal optimisation strategy, the group has shut down older, less efficient production lines to streamline operations and focus on automated, higher-efficiency facilities, aiming to reduce costs and enhance productivity.

Nevertheless, higher US tariffs on Chinese glove imports are creating opportunities for Malaysian producers, as distributors begin restocking following inventory overhangs from 2021 to 2023, it said.

“Production in the US plant has started since last quarter and Supermax is securing contracts with US customers in order to boost sales. Supermax benefits from the severe US tariffs on Chinese gloves, directly serving US buyers who are seeking non-China supply. This promises to be a direct competitive advantage as its gloves are exempt from all US import tariffs,” it said.

At Tuesday’s close, shares of Supermax were one sen or 3.28% lower at 29.5 sen. This gives the group a market value of RM947.04 million.