Language:

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 42 factories, 682 production line and a capacity of 63.9 billion pieces of gloves per annum. Our consistently strong performance and robust growth in market capitalization with a return to shareholders of 7,884% (as at 25 September 2019) since its listing in 2001, also led Top Glove to be included as a constituent of the FTSE Bursa Malaysia KLCI. 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.

Overcoming a Challenging Business Environment to Deliver Healthy Growth in FY2019

We are pleased to report that Top Glove has delivered healthy growth in Sales Revenue and Sales Volume for the 4QFY19 and Full Financial year 2019 amidst a challenging operating environment, with rising raw material costs and intense market competition.

For FY2019, the Group posted Sales Revenue of RM4.8 billion, an increase of 13.8% over FY2018, while Sales Volume also rose 10.2% compared with the previous year. The strong Sales Volume growth resulted mainly from the nitrile glove segment which saw a surge of about 30%, made possible by the Group’s focus on enhancing its marketing efforts, as well as nitrile capacity which increased by 54% over the past 2 years, with plans to grow further.  The strong Sales Volume growth was also attributed to the surgical glove segment which grew by 46%, largely due to contributions from Aspion. The commendable performance was credited primarily to improved product quality and higher efficiency levels from newer and more technologically advanced nitrile glove factories with increased automation. However, Profit After Tax came in at RM373.6 million, easing 12.9% against FY2018 owing to a sharp increase in natural rubber latex prices.  

Meanwhile, for 4QFY19, Sales Revenue was RM1.19 billion, on par with 3QFY19 and marginally lower than 4QFY18 by 2.8%.  Profit After Tax improved by 6.5% quarter-on-quarter to RM80.1 million following lower taxation in 4QFY19, with the recognition of deferred tax assets from unutilised tax losses and allowance.  However, Profit After Tax reduced 14.2% year-on-year.

In keeping with our commitment to deliver shareholder value, the Board declared a final dividend of 4 sen per share, payable on 23 December 2019.  This would bring the total FY2019 dividend payout to 7.5 sen per share.

Far from having to contend to oversupply, Top Glove will continue to expand organically in order to meet the increase in global glove demand, which is set to grow by 10% yearly. In progress is the expansion of several existing and new facilities, which will boost the Group’s total number of production lines by an additional 194 lines and production capacity by 20.2 billion gloves per annum. By December 2020, Top Glove is projected to have a total of 876 production lines and a production capacity of 84.1 billion gloves per annum.

Emphasising our commitment to sustainability, we established a Board Sustainability Committee comprising 5 of our Non-Executive Directors, to enable us to make meaningful strides in this increasingly important space. We continue to step up our initiatives particularly in the area of labour practices, the highlights of which include the following:

·         Implementing the Zero Recruitment Fee Policy under which the company bears 100% of its foreign workers’ recruitment costs

·         Developing a 5-year Diversity & Inclusion Roadmap to further enhance our practices in this area 

·         Introducing the Zero Harm Programme whereby factories are well-equipped with designated First Aid Corners

We also launched our flagship green product, Biogreen™ Biodegradable Nitrile Gloves (Powder-Free), which are proven to biodegrade at least 10 times faster compared to conventional nitrile examination gloves.  In addition, Top Glove was included as an index component of the Dow Jones Sustainability Indices (DJSI) for Emerging Markets. Top Glove is one of only 2 Malaysian companies featured in this index.

Top Glove was honoured with several prestigious awards over the course of the financial year 2019.  It received recognition at the 2nd Asean Corporate Governance Award 2018 under the Top 50 ASEAN PLCs category, as well as MSWG Asean Corporate Governance Award 2018 under the category of Industry Excellence Award (Healthcare).  The company also emerged winner at the Asean Business Awards 2018under the Priority Integrated Sector (Rubber-based) category, as well as the Most Outstanding Company in Malaysia (Industrials Sector) in 2019 Asiamoney Asia’s Outstanding Companies Poll.  In addition, Top Glove was recognised as CSR Malaysia Company of the Year (Manufacturing of Gloves) at the CSR Malaysia Awards 2019.  Attesting to its consistently strong performance and high standards of corporate governance, Top Glove was added to the Hijrah Syariah Index (effective 24 June 2019).

Going forward, we remain upbeat about prospects for both company as well as industry. The demand for gloves is still strong as demonstrated by the sales and volume growth we are seeing.  With our on-going quality, automation and process improvement initiatives we have in place, we are optimistic of a better showing in the financial year ahead.

 

TOP GLOVE, TOP QUALITY, TOP EFFICIENCY

GOOD HEALTH, SAFETY FIRST & BE HONEST

Tan Sri Dr Lim Wee Chai
25 September 2019