Hartalega continues growth trajectory
Focus Malaysia 09 Nov 2018 14:42
Hartalega Holdings Berhad (Hartalega) recorded a solid performance for its second quarter ended 30 September 2018, posting a higher profit after tax (PAT) of RM120.3 million compared with RM113.7 million in the previous year’s corresponding quarter. Profit before tax (PBT) grew to RM142.3 million and revenue rose by 22% to RM714.2 million for the quarter under review. This increase in top and bottom line results was attributable to additional production capacity and higher average selling prices.
However, compared with a PBT of RM148.2 million in the preceding first quarter of the financial year, the Group saw a slight decline in profit. This was mainly due to rising raw material costs and adjustment of market demand as a result of the resumption of vinyl glove production in China.
For the cumulative six-month period ended 30 September 2018, the Group registered an improved PAT of RM245.4 million, a 17% increase from RM210.1 million in the same period last year. PBT grew to RM288.1 million while revenue rose to RM1.42 billion for the first half of the financial year. The Group recorded a 15% increase in sales volume for the six-month period, largely due to contributions from new capacity in line with Hartalega’s sustainable expansion programme.
Earnings per share (EPS) for the quarter under review was 3.62 sen compared with 3.44 sen for the same quarter last year. For the six-month period, EPS was 7.38 sen compared with 6.36 sen in the previous year’s corresponding period. Net assets per share was RM0.64 as at 30 September 2018.
As a result of the Group’s commendable performance, the Board declared a first interim dividend of 2.2 sen per share single tier for its financial year ending 31 March 2019, as per the entitlement date on 7 December 2018 and payable on 28 December 2018.
Mr Kuan Mun Leong, Managing Director of Hartalega Holdings Berhad, said, “We remain confident on the outlook ahead for the Group, given robust demand in the glove sector which continues to grow at 8% to 10% per annum. Tapping on this through our continuous expansion plans via our Next Generation Integrated Glove Manufacturing Complex (NGC), we expect to see earnings growth moving forward.”
“To this end, three production lines at Plant 5 of the NGC are currently operational, with remaining lines to be progressively commissioned and fully completed by March 2019. This will see Hartalega’s total installed capacity increase to 37 billion pieces per annum. Concurrently, construction of Plant 6 is underway, with the first production line targeted to be operational by the second half of 2019. Once fully completed, Plant 6 will add another 4.7 billion pieces of gloves per annum to the Group’s production capacity.”
“Looking ahead, we are focused on driving efficiencies coupled with our recent game-changing innovation, the world’s first antimicrobial glove (AMG). We successfully delivered the first shipment of AMG to a major German medical supplies company in September 2018 and potential market share growth for AMG is certainly promising. We are optimistic that on the back of these sustained growth plans, prospects remain bright for the Group,” concluded Mr Kuan.