Dear Valued Stakeholders,
Welcome and thank you for visiting Top Glove’s website.
Our journey began in 1991 with only 1 factory, 1 glove production line and 100 employees. Today, we have transformed into an international business attaining 26% of the world market share for rubber gloves with production bases in Malaysia, China, Thailand and marketing offices in these countries as well as Germany, USA and Brazil. As the world’s largest manufacturer of gloves, we presently have 46 factories, 724 production lines and a production capacity of 85.5 billion pieces of gloves per annum.
Having been in business for 3 decades this 2020, we are a young and dynamic company. Our continued focus on innovation, digitalisation process improvements and service orientation continues to drive our performance upwards year after year.
Our prospects including the glove industry remain promising. Global demand for gloves is growing steadily at 10% to 12% per annum driven by strong market fundamentals.
We are guided by our core values which include promoting our Business Ethics of Honesty, Integrity and Transparency and bonded by our Corporate Values of Respect, Integrity, Value, Empowerment and Relationship, represented by the acronym R.I.V.E.R. Health is truly wealth as 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 towards excellence is quickly gaining momentum. We have set our sights even higher and aim to capture 30% of the world market by year-end 2020 and ultimately become a Fortune Global 500 company by 2035.
Achieving New Highs in a New Normal with New Peaks Ahead
For the Fourth Quarter ended 31 August 2020 (4QFY2020) and full financial year 2020 (FY2020), Top Glove delivered an outstanding performance like never before, in a year like no other.
Our new historical highs for FY2020 and 4QFY2020, at a glance:
- Unsurpassed Sales Revenue of RM7.24 billion, up 51% from FY2019
- Unparalleled Profit After Tax of RM1.9 billion, a spike of 417% versus FY2019
4QFY2020:
- Exceptional Sales Revenue of RM3.11 billion with triple-digit growth of 162% year-on-year
- Extraordinary Profit After Tax of RM1.33 billion, registering 18 times growth
With more upside in glove demand expected, the Group also anticipates fresh record-highs in FY2021. Learn more about our unprecedented results here.
Following the Group’s remarkable performance, a final dividend of 8.5 sen per share was declared, bringing the total FY2020 dividend payout to 11.8 sen per share, amounting to a total payout of approximately RM961.2 million. This is an increase of 9.3 sen or 373% over FY2019, which is a net profit payout ratio of 51%.
The tremendous growth stemmed from a global surge in demand for gloves, on the back of the COVID-19 pandemic. Our improved profit was also attributed to continuous productivity enhancements, while the Group’s utilisation levels of close to 100% amplified production efficiency and lowered overheads significantly. Further contributing to the phenomenal results was Aspion’s Profit Before Tax of RM139.9 million.
The healthy cash flow generated enabled us to lower borrowings and as at 31 August 2020, the Group was in a net cash position of RM2.34 billion.
Top Glove will continue to expand its capacity to ensure it is able to fulfil global glove demand, which is expected to grow from a pre-COVID level of about 10% per annum, to about 15% per annum post-COVID.
Our prospects going forward remain very promising. With a 150% increase in our monthly order book from pre-COVID days and lead time (delivery) going up from 40 days to as much as 400 days presently, we believe our best days are still ahead of us.
However, we will not be complacent and continue to work hard to produce more gloves, so we can keep doing well by doing good.
Thank you.
TOP GLOVE, TOP QUALITY, TOP EFFICIENCY, GOOD HEALTH, SAFETY FIRST & BE HONEST
Tan Sri Dr Lim Wee Chai
Executive Chairman
17th September 2020