KUALA LUMPUR: Kossan Rubber Industries Bhd posted a net profit of RM806,000 in the fourth quarter (Q4) ended Dec 31, 2023 (FY23) from a net loss of RM2.49 million in 2022.
The company's revenue fell 16.88 per cent to RM400.15 million in Q4 2023 from RM481.44 million last year due to the lower revenue from Gloves and CleanRoom divisions.
The gloves division's revenue decreased 18.15 per cent to RM329.58 million in Q4 2023 compared with RM402.65 million in 4Q22 due to the lower average selling price (ASP) and lower sales volume.
For the full year ended Dec 31, 2023 Kossan Rubber recorded a lower net profit of RM14.22 million compared to RM157.10 million last year.
Group revenue stood at RM1.59 billion, a drop of 32.34 per cent from RM2.34 billion in FY22.
Kossan said the glove sector remains impacted by an enduring supply-demand imbalance, with expectations for this challenging operational landscape to continue throughout FY24.
As the market experiences realignments due to industry consolidation and capacity rationalisation, it said the pressure on average selling prices from international competitors is likely to persist.
"Despite these immediate market challenges, the long-term outlook for glove demand remains optimistic, driven by increasingly stringent standards and heightened hygiene awareness in both the medical and industrial sectors.
"The technical rubber products (TRP) division anticipates a gradual uptick in global economic activity and infrastructure spending, which will in turn stimulate the infrastructure sectors.
"The company expects this division to deliver a satisfactory performance for FY24," it added.
