Language:

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 1 glove production line. Today, we have attained great success on a global level, emerging as the world’s largest manufacturer of gloves with 40 factories, 648 production lines and a production capacity of 60.5 billion pieces of gloves. We are also the preferred employer to a diverse workforce of 17,000.

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, both in the glove business and other synergistic businesses as well.

An Outstanding 3QFY18

In 3QFY18, I am pleased to report that we delivered a stellar performance as we continued our upward trend, setting the scene for a strong finish to the financial year.

The Group delivered 3QFY18 Sales Revenue of RM1.1 billion, a 26.6% increase year-on-year.  This is the first time Top Glove achieved Sales Revenue of above RM1 billion within a single quarter.   Profit Before Tax also rose 46.7% to RM134.2 million and Profit After Tax went up by 54.1% to RM119.4 million compared with 3QFY17.  Meanwhile, Sales Volume (Quantity Sold) surged by a record high of 37% in contrast to the corresponding period in FY17. 

We also demonstrated positive growth in comparison with 2QFY18.  Sales Revenue increased by 14.8%, while Profit Before Tax and Profit After Tax grew by 7.8% and 8.5% respectively.  Sales Volume also improved by 8% quarter-on-quarter. 

On a 9-month basis, we attained Sales Revenue of RM3 billion, 19.6% higher than 9MFY17.  Profit Before Tax came in at RM380.7 million while Profit After Tax was RM335.3 million, both figures surpassing full year Profit for FY17.

The excellent set of numbers followed increased glove demand, which Top Glove’s balanced product mix is well positioned to cater for.  Stronger demand growth stemmed particularly from Asia (where demand growth from India, China and Vietnam exceeded 100% on a 9-month basis), as well as Eastern Europe, Middle East and Latin America. 

Stronger glove demand also led to better cost efficiencies resulting from a higher utilisation rate, thereby contributing to the Group’s good performance.  Our focus on continuous quality and cost improvement initiatives, and harnessing technological advances to address business challenges also accounted for the improved profitability.  Nonetheless, this was offset by a marked increase in the natural gas tariff, while the upward trend in nitrile latex prices compared with 2QFY18 also caused some pricing pressure.

As a growing and dynamic company, Top Glove will continue to expand its manufacturing capabilities, organically as well as through M&As and joint ventures.  The construction of Factory 31 (operational by July 2018) and Factory 32 (operational by early 2019) is underway, which upon completion, will increase the Group’s total number of production lines by an additional 74 lines and production capacity by 7.4 billion gloves per annum.  Meanwhile, our condom manufacturing facility is expected to be operational by end June 2018.

Meanwhile, our acquisition of Aspion Sdn Bhd was completed on 5 April 2018 and integration of the 2 businesses is in progress.  In May 2018, Top Glove also completed its acquisition of Duramedical Sdn Bhd, a company manufacturing and marketing dental hygiene products such as dental dams, for the purchase consideration of RM2.85 million, an initiative to diversify into medical related products catering to our customer base.  In another development, Top Glove was included as a constituent of the MSCI Global Standard Index effective 1 June 2018, in recognition of its strong and consistent growth.

We are pleased to have performed exceptionally well this quarter.  In addition to increased glove demand, our continuously strong results are also a testament to the effectiveness of our ongoing internal improvement initiatives, which enable us to keep driving down costs, whilst still delivering the high quality gloves our customers have come to expect of us. 

 

The operating environment ahead is still expected to be challenging.  However, we believe that as we continue to undertake quality improvement and cost-saving projects, and leverage advanced technology, we will be able to overcome these challenges and conclude our financial year on a healthy and positive note.

 
 

TOP GLOVE, TOP QUALITY, TOP EFFICIENCY

GOOD HEALTH, SAFETY FIRST & BE HONEST

Tan Sri Dr Lim Wee Chai
June 2018