Hartalega
Holdings Berhad (Hartalega), the world’s largest nitrile glove manufacturer, continues
to deliver consistent results. For its financial year ended 31 March 2020, the
Group recorded a higher profit before tax (PBT) of RM555.4 million as well as
an improved revenue of to RM2.9 billion. Profit after tax (PAT) stood at RM434.4
million.
Left to right- Kuan Mun Keng (Director- Corporate Finance & Business Development), Kuan Kam Hon (Executive Chairman) and Kuan Mun Leong (CEO)
For its current financial
year, the Group kicked off its first quarter ended 30 June 2020 on a strong
note, recording a PAT of RM221.1 million, a significant jump from RM94.2 million in the same
quarter last year. PBT for the quarter under review grew to RM272.8 million
while revenue rose to RM920.1 million. Moving forward, the Group expects to
record better results in the coming quarters as average selling price continues
to increase due to strong global demand for gloves.
Mr Kuan Mun Leong, Chief
Executive Officer of Hartalega Holdings Berhad, said, “We remain committed to
ramping up expansion plans in order to meet heightened global demand for
nitrile gloves. The unfortunate Covid-19 pandemic is expected to continue to
drive market demand and we are focused on playing our role in protecting front
liners in the ongoing fight against this global crisis.”
“In order to cater to this
demand growth, as well as taking a longer-term perspective towards the
structural step-up in demand, Hartalega is accelerating capacity expansion via our
Next Generation Integrated Glove Manufacturing Complex (NGC). To date, we have
commissioned 10 out of 12 production lines for Plant 6, while for Plant 7, the
first production line is on-track for completion by October 2020.”
“On
top of this, Hartalega is further scaling up our expansion plans with the
acquisition of land adjacent to Plant 7 of the NGC. Totalling 60.57 acres and
with all necessary infrastructures readily available, this will see the construction
of four additional plants, namely Plants 8 to 11, which will progress
expeditiously, adding installed capacity of another 19 billion pieces per annum
once completed.”
“Going beyond this, our
long-term capacity growth will be propelled by our next expansion phase, the
NGC 2.0. We aim to commission the first production line of NGC 2.0 in the first
half of 2022. Once fully completed by 2027, these expansion plans will see the
Group’s total annual installed capacity increase to 95 billion pieces per
annum.”
“With these plans in place,
we are confident that Hartalega will not only uphold our position as a
frontrunner in the industry, but also continue contributing to safeguarding
lives across the world,” concluded Mr Kuan.
At Hartalega’s Annual General
Meeting, the Group recommended a final dividend payout of 2.1 sen per share
single tier in respect of the financial year ended 31 March 2020, to reward
shareholders for their continuous support. This brings the total dividend paid
out for the 2020 financial year to 7.75 sen per share.
About
Hartalega
The Hartalega Group has
been manufacturing premium latex gloves since 1988 and currently operates from
state-of- the-art manufacturing plants in Bestari Jaya and Sepang, Selangor.
The Group has a current available capacity of producing over 37 billion gloves
annually. Hartalega is currently the largest producer of nitrile gloves in the
world and exports to over 70 countries across five continents, namely Americas,
Asia, Europe, Australia and Africa. Hartalega was listed on the Main Board of
Bursa Malaysia in April 2008. As at June 30, 2020, Hartalega’s shareholders’
funds stood at RM2.7 billion, while market capitalisation is currently in
excess of RM40 billion.
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