KUALA LUMPUR (March 18): Top Glove Corp Bhd (KL:TOPGLOV) is expecting a 10% increase in sales volume in the second half of its financial year 2026, as it brushed off concerns about the escalating conflict in the Middle East.
The world's largest glove maker expects this growth to be underpinned by steady demand for gloves as an essential product. Management has so far seen limited sales impact from the ongoing conflict, noting that the Middle East accounts for only about 4% of its total sales. The actual sales disruption is estimated at a negligible 1%-2%.
“We are looking at quarterly [sales volume] growth of around 5% increase per quarter based on our budget. Effectively, in the second half, we can look at 10% increase,” Top Glove managing director Lim Cheong Guan told a virtual media and analyst briefing on the group's financial results for the second quarter ended Feb 28, 2026 (2QFY2026).
“We will continue to monitor the impact, if any, maybe in the third quarter, there may be (further) disruption in terms of sales volume. But overall, if you look at Middle East, the effect there is only maybe 2%... It only affected shipments through the Strait of Hormuz,” said Cheong Guan.
He added that shipments to other key markets, such as the US and Europe, remain largely unaffected.
Top Glove reported a 1.5% increase in net profit to RM30.76 million in 2QFY2026, compared to RM30.28 million a year ago. Excluding currency effects, profits would have nearly doubled as revenue for the quarter rose 14% year-on-year to RM1.01 billion from RM883.65 million a year ago, its bourse filing showed.
For the first half of FY2026, net profit surged nearly 94% to RM69.34 million from RM35.76 million in the first half of FY2025. Revenue rose 6.7% to RM1.89 billion from RM1.77 billion. No dividend was declared for the period.
Top Glove’s share price slipped half a sen or 0.86% to close at 57.5 sen on Wednesday, bringing the group a market capitalisation of RM4.73 billion.