Welcome to the Top Glove website. Whether you are an existing or potential customer, shareholder, business partner, or employee, I invite you to explore this portal and learn more about all we have to offer.
Our exciting journey began in 1991, as a local business with 1 factory, 1 glove production line and 100 employees. Since then, we have been pushing boundaries and identifying innovative ways to deliver on our Business Direction to produce high quality gloves at an efficient low cost, the result of which we have attained international acclaim, emerging as the world’s largest manufacturer of gloves with 40 factories, 648 production line and a capacity of 60.5 billion pieces of gloves per annum. Our consistently strong performance and robust growth in market capitalization with a return to shareholders of 7,635% (as at 5 April 2019) since its listing in 2001, also led Top Glove to be included as a constituent of the FTSE Bursa Malaysia KLCI, effective 24 December 2018. We are also privileged to be the preferred employer to an 18,000-strong diverse workforce, who are the lifeblood of our company.
Indeed, we have undergone much change over the decades and continue to be open to doing things differently, with a view to improving the way we work, for the betterment of our manufacturing operations, company performance and people. In all we do, we are guided by our core values which include foremost, working with Honesty, Integrity and Transparency, which are the tenets of our Business Ethics and the very foundation of our company. We also believe that health truly is wealth, to which end we practise Top Glove’s 5 Quality Wells Clean Well, Eat Well, Work Well, Exercise Well and Sleep Well daily, so we remain fit and well-positioned to contribute positively and compete effectively.
Our journey doesn’t stop here. In fact, we have set our sights even higher going forward. As a growing and dynamic company, we aim to capture 30% of the world market by 2020 and to ultimately become a Fortune Global 500 company by 2040. These may be ambitious goals but we do not set goals which are easy to attain; we set goals which are good for our business and good for our people. While the road towards success may be challenging, we believe that as we continue to work harder, faster and smarter and leverage advanced technologies, we will be able to overcome them just as we have in the past.
Good Sales Volume Growth Amidst Challenging Environment in 2QFY2019
We are pleased to have
delivered a positive performance for 2QFY19 despite an increasingly challenging
and competitive business environment.
For 1HFY19, Top Glove achieved Sales Revenue of RM2.42 billion, a 27.7%
increase from 1HFY18 and which at the half year mark, already represents 57.5%
of the total Sales Revenue for FY18. The
strong numbers were attributed to robust Sales Volume, which was 18% higher
compared with the corresponding period in the previous financial year. Profit Before Tax
was also up by 8.4% while Profit After Tax was higher by 1.1% versus
1HFY18.
Top Glove achieved 2QFY19 Sales
Revenue of RM1.16 billion this quarter, a 21% increase compared with
2QFY18. This was attributed to strong
Sales Volume growth of 16% which is higher than the projected global demand of
about 10% a year, as well as a higher average selling price (ASP). The Group’s EBIT also improved by 14.2% year-on-year
owing to the increase in quantity sold, as well as quality and operational
efficiency enhancements.
Top Glove will continue to expand
its operations in line with the growing glove demand globally. In progress is
the expansion of several existing facilities: F32 (Phase 1 & 2 to commence
operations by 2nd quarter and 3rd quarter 2019
respectively), F33 (new block to be operational by 2nd quarter
2019), refurbishment of F2B (operational by 4th quarter 2019), and
F5A (new block to be operational by 4th quarter 2019). Additionally,
the construction of new facilities, F40 and F42 (1st phase) in
Malaysia will be operational by 1st and 4th quarter 2020
respectively whereas F41 in Vietnam and F8A in Thailand will be operational by
2nd and 3rd quarter 2020. These will boost the Group’s
total number of production lines by an additional 200 lines and production
capacity by 20.4 billion gloves per annum. By December 2020, Top Glove is projected to have a total of 848
production lines and a production capacity of 80.9 billion gloves per
annum.
On 1 March 2019, the Group
successfully completed an issuance of Exchangeable Bonds in the amount of
USD200 million. The purpose of the bonds
was to retire existing borrowings and will benefit the company in terms of
lower interest cost, as well as improve cashflow. As a result of this exercise, the Group
expects to gain about RM16 million per annum in cash savings and RM2 million in
interest expenses.
We continue to embark on initiatives
to improve the operations of Aspion, particularly in terms of production
efficiency. The Group is also leveraging
Aspion's existing capabilities and well-established name in surgical gloves to
further grow its market share in this segment. This will enable Top Glove to diversify its existing product range,
thereby obtaining a competitive edge.
Going forward, Top Glove envisages a
highly challenging business environment both on the domestic front and macro-economic
level. However, the Group remains positive on industry outlook. Gloves are an essential
item in the medical sector, the demand for which has proven to be relatively
resilient to economic and political uncertainty and is set to grow more than
10% a year.
Employee
well-being continues to be a foremost priority at Top Glove. We acknowledge
that our people have been instrumental to our success thus far and will
continue to be the most important factor in achieving our Fortune Global 500
Dream. We recognise there are areas we can improve on and are committed to
doing so, particularly in terms of health and working environment.
We have done well in 2QFY19 despite the challenging business environment
and aim to do even better over the course of the financial year. We view the challenges ahead positively and
they will serve as a springboard for greater success, inspiring us to work
harder, smarter, faster and more creatively.
TOP GLOVE, TOP QUALITY, TOP EFFICIENCY
GOOD HEALTH, SAFETY FIRST & BE HONEST
Tan Sri Dr Lim Wee Chai
22 March 2019