KUALA LUMPUR (June 18): Top Glove Corp Bhd (KL:TOPGLOV) expects to pay higher dividends in financial year 2026 (FY2026) as earnings recover, with its payout ratio moving closer to the group’s policy of distributing 50% of profit after tax and minority interest (Patami).
Top Glove has not achieved its 50% payout target since FY2022. The company resumed dividend payments in FY2025 after suspending payouts in FY2023 and FY2024 amid a downturn in the glove industry caused by oversupply and weaker selling prices.
For the financial year ended Aug 31, 2025 (FY2025), the world’s largest glove maker paid a dividend of 0.48 sen per share, amounting to RM38.5 million and representing a payout ratio of 37%.
“Looking at performance, it is much better compared with FY2025. So, we will try to move closer to our 50% dividend payout policy, and we should see better dividends in FY2026,” corporate director Lim Cheong Guan said during the group’s post-results briefing on Thursday (June 18).
Top Glove, which has completed three quarters of FY2026, has yet to declare a dividend for the financial year. However, Lim said the board will consider an interim dividend when it announces its fourth-quarter results.
The expected increase in dividends comes as earnings recover. Top Glove’s net profit more than doubled to RM80.99 million in the third quarter ended May 31, 2026 (3QFY2026) from RM34.75 million a year earlier, driven by higher sales volume, selling price adjustments and cost efficiencies.
Quarterly revenue rose 31.9% year-on-year to RM1.1 billion in 3QFY2026 from RM830.25 million.
For the first nine months ended May 31, 2026 (9MFY2026), net profit more than doubled to RM150.33 million from RM70.5 million a year earlier, while revenue increased 14.8% to RM2.98 billion from RM2.6 billion.
Top Glove attributed the improved performance to prudent raw material management, including efforts to secure a stable supply of nitrile latex amid recent disruptions, allowing it to maintain production and fulfil customer orders.
The glove maker also adjusted average selling prices in response to higher raw material costs, while improvements in product quality, cost efficiency and higher utilisation rates supported better margins.