BY JUSTIN LIM theedgemarkets.com
Top Glove Corp Bhd posted its second straight quarterly loss in the first quarter ended Nov 30, 2022 (1QFY2023), dragged by lower sales and ongoing normalisation of average selling prices (ASPs).
The group’s net loss widened quarter-on-quarter (q-o-q) to RM168.24 million from RM52.59 million, as revenue dropped 36.11% q-o-q to RM632.53 million from RM990.1 million.
The group posted a net profit of RM185.72 million on revenue of RM1.61 billion for the corresponding period of the previous year (1QFY2022). Sales volume (quantity sold) eased by about 48% year-on-year.
Going forward, Top Glove expects to derive some benefits from the declining trend in raw material prices where average natural latex concentrate prices have declined by 7% to RM4.73 per kg and nitrile latex prices have decreased by 49% to US$0.91 (RM4.02) per kg year-on-year.
At the midday break, Top Glove's share price was two sen or 2.55% lower at 76.5 sen, giving the group a market capitalisation of RM6.28 billion. Year-to-date, the stock has depreciated 68% from RM2.39 on Jan 3 this year.
