Top Glove's Q3 earnings dip 31pct despite surge in sales volume and revenue
KUALA LUMPUR: Top Glove Corp Bhd's net profit for the third quarter ended May 31, 2025, dropped 31 per cent year-on-year to RM34.7 million, mainly due to heightened competition and the weakening of the US dollar against the ringgit.
In a filing with Bursa Malaysia, the glove maker noted that the corresponding quarter a year earlier had also benefited from a higher gain from land disposals.
Despite the lower earnings, quarterly revenue rose 30 per cent to RM830.3 million from RM636.9 million, driven by a 45 per cent increase in sales volume, reflecting continued global demand recovery.
Earnings per share for the quarter stood at 0.43 sen, down from 0.63 sen a year ago.
No dividend was declared for the quarter under review.
Top Glove said the average selling price (ASP) of gloves remained competitive, while raw material costs trended lower quarter-on-quarter. The average natural latex concentrate price fell nine per cent, while nitrile latex was down four per cent.
For the cumulative nine-month period, net profit surged to RM70.5 million from a net loss of RM58.2 million in the same period last year, buoyed by a 55 per cent jump in revenue to RM2.6 billion and a 65 per cent rise in sales volume.
Managing director Lim Cheong Guan said the third-quarter performance was impacted by pronounced headwinds, chiefly lower ASPs, heightened competition and cost savings being passed through to customers.
"However, it is encouraging that we have remained profitable while successfully delivering volume growth," he said in a statement.
"Moreover, our cumulative nine-month performance continues to track steadily towards pre-Covid levels, which is more reflective as quarterly results can be more volatile due to the effects of headwinds and tailwinds.
"These speak to the effectiveness of our continuous focus on quality improvement and cost efficiency, as well as our agility in responding to shifting market dynamics," he added.
Top Glove ended the quarter with RM305.2 million in cash and bank balances, down from RM351.2 million at the start of the financial year.
Total liabilities rose to RM1.65 billion from RM1.12 billion as at end-August 2024, mainly due to the issuance of an RM800 million senior sukuk to refinance its perpetual sukuk.
Despite global uncertainties, Lim remained optimistic about long-term prospects.
"We believe the long-term outlook is still promising as gloves are an essential item across multiple sectors, which will drive sustained global demand.
"We are also committed to delivering value to our stakeholders, while staying true to our principles of responsible and sustainable growth," he said.
Top Glove also highlighted its environmental, social and governance (ESG) recognition, having achieved a score of 4.1 out of 5 in the FTSE ESG Ratings, placing it among the top 10 per cent of over 700 companies assessed in the global healthcare segment.
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"Most glove tenders fall below the €5 million cap, so the effect won't be significant right away. But it's a good direction. The EU is signalling a shift towards diversifying away from China and we believe that over time, they may revise the threshold, which could eventually benefit us. "The message from the EU is also encouraging for private companies looking to expand or shift supply chains beyond China," he added. Top Glove Corp Bhd's net profit for the third quarter ended May 31, 2025, dropped 31 per cent year-on-year to RM34.7 million, mainly due to heightened competition and the weakening of the US dollar against the ringgit. The country's second largest glove maker noted that the corresponding quarter a year earlier had also benefited from a higher gain from land disposals. Despite the lower earnings, quarterly revenue rose 30 per cent to RM830.3 million from RM636.9 million, driven by a 45 per cent increase in sales volume, reflecting continued global demand recovery. No dividend was declared for the quarter under review. Top Glove said the average selling price (ASP) of gloves remained competitive, while raw material costs trended lower quarter-on-quarter. The average natural latex concentrate price fell nine per cent, while nitrile latex was down four per cent. For the cumulative nine-month period, net profit surged to RM70.5 million from a net loss of RM58.2 million in the same period last year, buoyed by a 55 per cent jump in revenue to RM2.6 billion and a 65 per cent rise in sales volume. Cheong Guan said the third-quarter performance was impacted by pronounced headwinds, chiefly lower ASPs, heightened competition and cost savings being passed through to customers. "However, it is encouraging that we have remained profitable while successfully delivering volume growth," he said in a statement. 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"We are also committed to delivering value to our stakeholders, while staying true to our principles of responsible and sustainable growth," he said. Top Glove also highlighted its environmental, social and governance (ESG) recognition, having achieved a score of 4.1 out of 5 in the FTSE ESG Ratings, placing it among the top 10 per cent of over 700 companies assessed in the global healthcare segment. It was also named in Fortune's Southeast Asia 500 list for the second consecutive year.
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