KUALA LUMPUR: Hartalega Holdings Bhd returned to the black in its financial year ended March 31, 2024 (FY24) with a net profit of RM12.7 million versus a loss of RM235.14 million a year ago.
Hartaleg said this was supported by higher interest income, foreign currency exchange gain and reversal of certain provisions no longer required during the period under review.
Group revenue for the year came in 23.7 per cent lower year-on-year (YoY) at RM1.84 billion against RM2.41 billion previously due to lower sales volume and reduced average selling price (ASP) amid soft market demand during the fiscal year under review.
For the fourth quarter (Q4FY24), the company posted a net profit of RM15.12 million from a loss of RM319.85 million in the same period in 2023 due to higher ASP, which was mainly attributable to favourable foreign currency exchange movements.
It logged a higher revenue at RM529.83 million versus RM517.55 million in Q4FY23.
Despite the higher revenue, Hartalega's operating margins were affected by the higher raw material and upkeep costs following the ramping up of operations in its Next Generation Integrated Glove Manufacturing Complex production facilities to meet increased demand.
The company that added results during the quarter were also supported by the reversal of a provision made for a foreign subsidiary.
Chief executive officer Kuan Mun Leong stated that the rubber glove sector is turning a corner.
"While challenges persist, we are encouraged by the improving demand outlook and our ongoing measures to enhance operational efficiencies and cost competitiveness.
"On this note, our strategic decision to decommission the Bestari Jaya facility was the right move and has already borne fruit, impacting our bottom line positively," Kuan added.
Looking ahead, Hartalega saidnit will continue to execute its five-year strategic plan to strengthen business sustainability and resilience.
Core areas of focus include cost optimisation, scaling up automation and maintaining its leadership in social compliance and sustainability through its environmental, social and governance agenda.
"Although external market pressures will continue in the near term, glove demand will gradually normalise to pre-pandemic levels and expand further, driven by increasing healthcare needs and hygiene awareness globally. Hartalega will be ready when this upturn takes place," said Kuan.
