Top Glove profits in Malaysia soar on pandemic demand, but ban hampers US sales

KUALA LUMPUR (Reuters) – Malaysian Top Glove Corporation Bhd on Wednesday reported a 485% increase in third-quarter net profit as the COVID-19 pandemic led to strong demand for gloves.

The world’s largest manufacturer of medical gloves had posted record profits for the previous four consecutive quarters, bolstered by people using more gloves due to increased hygiene awareness during the pandemic.

In a stock exchange filing, the company said net profit for the March-May period jumped to 2.04 billion ringgit ($ 495.63 million), from 347.9 million ringgit a year ago. . UBS had forecast a profit of 2.54 billion ringgit, according to data from Refinitiv.

Its turnover increased 147% to 4.16 billion ringgit from 1.69 billion ringgit.

Top Glove shares, which are on hold ahead of its earnings announcement, rose 0.2% on Wednesday. They have nearly 22% this year.

Top Glove, which produces 100 billion pieces of gloves per year, said average selling prices, which peaked in February, have declined over the period and have made adjustments based on market price trends. gloves.

It also said that compared to the previous quarter, its sales volume decreased mainly due to reduced sales to the United States, following a temporary halt in US shipments from Malaysia due to a ban on ‘Import Customs and Border Protection (CBP) from the United States.

“Nonetheless, global demand for gloves remains resilient as glove use continues to increase, driven by the ongoing pandemic,” he said.

U.S. Customs banned the import of Top Glove products last July, citing evidence of forced labor practices at the company’s production facilities across Malaysia.

CBP subsequently ordered US ports to seize the company’s goods.

The manufacturer has worked to resolve the ban on CBP.

Top Glove said in April that it had resolved all indicators of forced labor in its operations and that this had been verified by London-based ethical trade consultant Impactt Limited.

U.S. action has blocked Top Glove’s pursuit of a billion dollar listing in Hong Kong, as potential investors worried about the impact, Reuters reported.

Top Glove said he remains committed to the list.

($ 1 = 4.1160 ringgits)

(Reporting by Liz Lee; Editing by Muralikumar Anantharaman)

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