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I am pleased to welcome you to the Top Glove website. This is an exciting time for our company and I hope this portal provides our multiple stakeholders with the opportunity to discover more about us and what we stand for. We also aim to ensure that information on our products, our financial performance and career opportunities with us is readily accessible.
A lot has changed since 1991, when we started the business as a local enterprise with 1 factory and 3 production lines. Today, we have attained great success on a global level, emerging as the world’s largest rubber glove manufacturer with 28 factories, 512 production lines and a production capacity of 48 billion pieces of gloves. We are also the preferred employer to a diverse workforce of 10,000.
There is no secret behind these achievements. What we have attained today has been founded on hard work and a focused pursuit of our Business Direction to produce consistently high quality gloves at efficient low cost, which will continue to drive our business well into the future.
Indeed, we have come a long way from our modest beginnings but our growth trajectory is far from over. Top Glove is still a young dynamic company, and I believe that we can do even more, and do it better. Keeping the future in view, we are targeting to capture 30% of the world market by 2020. We are also keenly on the lookout for M&A opportunities and joint ventures, not only in the glove business but other synergistic businesses as well. Becoming the world’s largest nitrile glove manufacturer is also high on our corporate agenda.
We are pleased to have delivered healthy growth in 2QFY17 amidst a challenging business environment.
The Group achieved 2QFY17 Sales Revenue of RM851.5 million, an increase of 8% compared with 1QFY17. Profit Before Tax and Profit After Tax were also on the rise, coming in at RM102.7 million and RM83.2 million, respectively representing an increase of 14% and 13% against 1QFY17. Sales Volume (quantity sold) eased 1% quarter-on-quarter, owing to shorter work months during the quarter in review, but was up 9% compared with 2QFY16.
Our strong performance was attributed to improvements adopted across the manufacturing process, which enabled the Group to maintain good quality while managing its costs efficiently. Upward price revisions implemented, the effects of which were felt in 2QFY17, were also instrumental in normalising Sales Revenue figures vis-à-vis the previous quarter.
Year-on-year, Sales Revenue grew by 23%. However, Profit After Tax was softer by 21% versus 2QFY16, following sharp increases in raw material prices. For 1HFY17, Top Glove recorded Sales Revenue of RM1.6 billion demonstrating growth of 10%, while Sales Volume also trended upward by 8% compared with 1HFY16. Meanwhile, Profit After Tax registered at RM156.8 million, easing 33% from 1HFY16, again attributed to higher raw material prices in 1HFY17. Whereas in comparison with 2HFY16, Profit After Tax went up by 22%.
As at 28 February 2017, the Group maintained a positive net cash position of RM38.6 million and a healthy balance sheet.
Looking ahead, we expect a more challenging business environment. Competition will intensify while costs are also rising. Given the high raw material price position, the Group will also have to rely on its good relationships with customers to share out the cost increases.
Nonetheless, we are optimistic on industry outlook given the resilient nature of the industry. We aim to do even better in the quarters ahead and to this end, will continue to strengthen our glove quality, costing and competitiveness.
Tan Sri Dr Lim Wee Chai