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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 33 factories, 550 production lines and a production capacity of 51.9 billion pieces of gloves. We are also the preferred employer to a diverse workforce of 12,000.

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. Longer term, we aim to become a Fortune Global 500 company by 2040.

We are pleased to have concluded our financial year on a strong note, charting once again record-high Sales Revenue for FY2017.

For 4QFY17, the Group achieved Sales Revenue of RM902.4 million, a 25% increase year-on-year and up 3.8% quarter-on-quarter.  Profit After Tax also registered higher at RM98.2 million, representing an improvement of 49.9% and 26.7% respectively compared with 4QFY16 and 3QFY17. Sales Volume (quantity sold) was exceptionally high, attaining growth of 13% versus 4QFY16 and for the first time ever, double-digit quarter-on-quarter growth of 14% in an exceptionally strong comparison versus 3QFY17. 

For full financial year 2017, we performed well with an all-time high of Sales Revenue at RM3.4 billion, an 18% increase over FY2016, following an upturn of 7% in Sales Volume compared with the previous financial year.  The uptrend in Sales Revenue also came on the back of an increase in average selling prices (ASP) arising from a surge in raw material prices and strengthening of the USD over the course of FY2017. Additionally, more sales of nitrile gloves, which command a higher ASP, coupled with new capacity, also helped move Sales Revenue figures higher. However, Profit After Tax eased by 8.2% to RM332.6 million compared to FY2016, during which Top Glove benefited from positive external factors of currency impact and lower raw material prices.  

Our good results were credited to ongoing internal improvements in the manufacturing process, which included initiatives to increase automation, reduce downtime and conserve heat energy, electricity and water. The robust numbers achieved were also attributed to new capacity coming onstream and strong demand growth.  We will continue to expand our glove operations organically and inorganic expansions via M&As, as well as new set-ups in related industries in order to grow faster and more efficiently. In relation, we have also commenced preparations for our condom manufacturing facility, expected to be operational in 2018. 

We also announced the signing of a letter of intent to acquire the entire ordinary shares of Eastern Press Sdn Bhd, a printing and packaging material manufacturer for RM47.25mil. The proposed transaction is expected to provide the Group with synergistic benefits, enabling it to improve its supply chain coordination, thereby allowing for flexible planning and better delivery time in relation to the supply of packaging material for its glove products, as well as better cost and quality control.

Meanwhile, The Group is also leveraging emerging technologies like Industry 4.0 and moving towards digitalisation and the implementation of "smart factories”.

As at 31 August 2017, we maintained a healthy financial position with a positive net cash position of RM70.6 million, despite capital expenditure of RM447.1 million.  Towards enhancing shareholder value, the Group proposed a final dividend of 8.5 sen, subject to shareholders’ approval at the upcoming AGM in January 2018, which would bring the total FY2017 dividend payout to 14.5 sen, representing a payout ratio of 54.6%. 

In recognition of our consistently good performance, Top Glove also received an award for Highest Growth in Profit After Tax Over Three Years at the Edge Billion Ringgit Club Awards 2017, held on 21 August 2017.

 

We expect the operating environment ahead to continue to be challenging.  Nonetheless, we remain upbeat about industry prospects and focused on the future.   Having closed our financial year on a positive note, we believe this is just the beginning for us.  We have higher goals to pursue and will keep working harder, faster and smarter, to ensure we deliver on these and continue to perform well in the quarters ahead.

 

TOP GLOVE, TOP QUALITY, TOP EFFICIENCY 

GOOD HEALTH, SAFETY FIRST & BE HONEST

Tan Sri Dr Lim Wee Chai
October 2017