KUALA LUMPUR (Oct 23): Comfort Gloves Bhd (KL:COMFORT) said on Friday it will settle a two-year tax dispute with the Inland Revenue Board for RM8.3 million. 

The settlement is subject to the finalisation of paperwork, the glove maker said in an exchange filing. Provisions for the settlement amount have been recorded earlier in the financial statements, Comfort Gloves noted.

All legal proceedings instituted over the disputed additional tax bill will be discontinued once the documentation has been completed, bringing the matter to “a full and final resolution”, the company said.

The settlement ends a court battle that began in April 2024, when Comfort Gloves’ subsidiaries Comfort Rubber Gloves Industries Sdn Bhd and Gallant Quality Sdn Bhd sued the Inland Revenue Board over an additional RM99.3 million in taxes.

The additional taxes were imposed due to the tax authority’s readjustment of the tax basis period when Comfort Gloves changed its financial year end to Dec 31, 2021, despite having obtained approvals.

The resolution comes after Comfort Gloves bounced back to profitability in the three months ended June 30, 2026 (2QFY2026) with a net profit of RM1.3 million compared to a net loss of RM54.84 million a year prior.

The turn around is attributed to top-line gains, the absence of property, plant and equipment (PPE) write offs of RM12 million incurred in the year prior, and a RM2.7 million reduction in foreign exchange losses.

Revenue for the quarter rose to RM90.72 million from RM80.4 million a year earlier, due to higher export and local sales volumes, accompanied by an increase in average selling prices.

The group is cautiously optimistic moving forward, despite global trade disruptions, US tariffs, forex volatility and persistent inflationary pressures.

It added that fluctuations of key raw-material, specifically Nitrile Butadiene Rubber latex as well as disruption in petrochemical supply may affect profitability in the coming quarters.

However, the group noted that it will remain flexible over its procurement approach and will exercise control over pricing, production cost, capacity utilization and regulatory compliance.

Comfort Gloves share ended two sen or 12.12% higher at 18.5 sen on Friday, giving the group a market capitalisation of RM107.8 million.