Top Glove's 2Q profit rises due to increased demand

Top Glove Corp reported a significant improvement in its financial results for the second quarter of its fiscal year 2025, ending February 28. The company attributed this positive outcome to a rise in glove orders, driven by a recovery in global demand. In the second quarter, Top Glove posted a net profit of RM30.28 million, a turnaround from a net loss of RM51.2 million in the same period last year. The earnings per share improved to 0.38 sen, compared to a loss per share of 0.64 sen a year ago. Revenue for this quarter reached RM883.65 million, an increase from RM550.33 million. For the first half of the fiscal year, Top Glove reported a net profit of RM35.76 million on revenues of RM1.77 billion, up from a net loss of RM108.91 million and revenue of RM1.04 billion during the same period last year. The company noted that sales remained strong even as the previous quarter had exceptionally high orders due to U.S. tariffs on Chinese glove imports. Profit after tax rose significantly by 141% in the second quarter, while profit after tax, amortization, and minority interest surged by 500% compared to the previous quarter. A drop in the prices of raw materials also contributed positively; natural rubber latex prices fell by 1% and nitrile latex prices decreased by 8%. Top Glove's managing director, Lim Cheong Guan, highlighted that the company’s improved results reflect its focus on quality and cost efficiency. He mentioned that as glove demand recovers, the company is well-positioned to take advantage of the opportunities while remaining aware of potential challenges ahead.