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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 30 factories, 500 production lines and a production capacity of 48 billion pieces of gloves. We are also the preferred employer to a diverse workforce of 11,000.

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 managed well amidst a challenging business environment in 3QFY17.

The Group achieved 3QFY17 Sales Revenue of RM869.6 million, an increase of 29.3% year-on-year and up 2.1% compared with 2QFY17.  Meanwhile, 3QFY17 Profit After Tax came in higher at RM77.5 million, an improvement of 23.5% year-on-year notwithstanding the spike in both natural rubber latex and nitrile latex prices.  However, quarter-on-quarter Profit After Tax eased 6.8% resulting from the time lag in passing on the increase in raw material prices to the customers, as well as lower volume sold.

Sales volume (quantity sold) was marginally lower by 1% against 3QFY16 and by 5% compared with 2QFY17, following an increase in average selling price (ASP), resulting from the upsurge in raw material prices, which caused orders to be deferred.  However, we are optimistic that sales volume growth will improve in 4QFY17 as raw material prices start to trend downward.

Sales Revenue for 9MFY17 also rose 15.7% to RM2.51 billion, compared with the corresponding period in the previous year.  However, Profit After Tax came in at RM234.4 million, softer by 21.1% against 9MFY16, attributed to relatively stronger numbers during 1HFY16 (owing to a stronger US Dollar and lower raw material prices then).  Nonetheless, our sales volume grew 5% compared year-on-year.

Our good performance despite unfavourable conditions, was attributed to ongoing improvements throughout our manufacturing process, which enabled us to manage costs efficiently.  Our good relationships with our valued customers also allowed the sharing of cost increases. 

We will continue to expand our operations organically and explore synergistic mergers and acquisitions and joint ventures, as well as new set-ups, such as a nitrile latex factory, condom factory and packaging materials (glove inner boxes), as well as other closely related industries, towards enhancing shareholder value.

As at 31 May 2017, the Group maintained a healthy financial position with a positive net cash position of RM95.3 million.  Further honouring our commitment to enhance shareholder value, we also declared an interim dividend of 6 sen, payable on 17 July 2017.

 

We expect the business environment will continue to be challenging, as currency continues to be volatile.  However, we are confident that as we continue to enhance our quality and cost-down initiatives, we will conclude our financial year on a stronger note.

 

TOP GLOVE, TOP QUALITY, TOP EFFICIENCY 

GOOD HEALTH, SAFETY FIRST & BE HONEST

Tan Sri Dr Lim Wee Chai
June 2017