PETALING JAYA: Kossan Rubber Industries Bhd saw a sevenfold jump in net profit to RM348.74 million in the third quarter ended Sept 30 2020, from RM49.18 million in the previous corresponding quarter, attributable to improvement in all three divisions – gloves, technical rubber products (TRP) and cleanroom.
Revenue increased by 94.51% to RM1.03 billion compared with RM531.26 million in third-quarter 2019 (Q3’19).
The glove division’s revenue increased 103.24% to RM946.57 million in Q3’20 from RM465.75 million in Q3’19, with PBT rising 670.8% to RM416.65 million in the current quarter compared with RM54.06 million a year ago, mainly attributable to the higher volume sold (+34.9%) and higher average selling price compared with Q3’19.
The TRP division recorded revenue of RM46.47 million in the quarter under review compared with RM46.61 million in Q3’19, while PBT rose 19.40% to RM9.75 million, mainly attributable to the resumption of full operations after the lifting of the movement control order and the rebound in deliveries in the infrastructure segment.
The cleanroom division grew revenue and PBT by 118.82% and 1131.80% respectively to RM40.25 million and RM10.19 million in 3Q20, compared with RM18.4 million and RM0.83 million in Q3’19. The improved performance was mainly attributable to the increase in demand for the division’s products as a result of the Covid-19 pandemic.
For the cumulative period, the group saw a net profit of RM544.6 million on a revenue of RM2.35 billion, from RM163.78 million and RM1.64 billion respectively a year before.
Looking ahead, the group said it is confident of a further step-up in revenue and profit growth in the fourth quarter and for FY20 to be an exceptional growth year for the group.
“In the gloves division, demand continues to far exceed supply. The increase in average selling price has started to be reflected in the current quarter, and the group expects further significant upward price adjustments on a quarter-on-quarter basis in the Q4’20,” it said in a Bursa filing.
In addition, the group said its TRP division, which had been impacted by the MCO, has since resumed full operations with a substantial improvement in its performance in the current quarter.
“With the anticipated gradual uptick in economic activity and infrastructure spending domestically and regionally, the TRP’s division, which comprises the infrastructure and automotive segment, is well placed to capitalise on the continued recovery in these sectors, and the Group expects this division to remain profitable,” it said.