Capacity expansion, higher demand lift Hartalega Q2 earnings

PETALING JAYA: Nitrile glove manufacturer Hartalega Holdings Bhd saw its net profit in the second quarter ended Sept 30, 2016 (Q2FY16) jump 17.9% to RM71.2 million, from RM60.4 million in the previous corresponding quarter, mainly driven by the group’s continuous expansion in production capacity and increase in demand.
Revenue was up 15.2% to RM436.97 million, compared with RM379.34 million a year ago, attributed by increase in sales volume.
Hartalega declared a first interim dividend of 2 sen per single tier share for its financial year ending March 31, 2017, as per the entitlement date on Dec 9, 2016 and payable on Dec 29, 2016.
“The group’s solid performance was mainly driven by our continuous expansion in production capacity, namely via our Next Generation Integrated Glove Manufacturing Complex (NGC),” its managing director Kuan Mun Leong said in a statement yesterday.
Kuan said the group will continue to build up its capacity at a moderate pace.
“With our strategic plans in place, we are confident we are well-positioned to maintain our momentum and meet steady demand growth year-on-year,” Kuan said.
Meanwhile, Hartalega said its earnings per share (EPS) for the quarter under review was 4.34 sen compared with 3.69 sen for the same quarter last year.
For the six-month period, the group’s net profit increased 3.5% to RM127.39 million, from RM123.09 million previously, while revenue jumped 19.9% to RM838.8 milllion, from RM699.9 million in the same period last year.
For the six-month period, EPS was 7.76 sen compared with 7.51 sen in the previous year’s corresponding period, while net assets per share was 96 sen as at Sept 30, 2016.