KUALA LUMPUR: Hartalega Holdings Bhd’s net profit jumped to RM120.3 million in the second quarter (Q2) ended September 30 2018 from RM113.7 million net profit a year ago.
The company’s cumulative six-month net profit rose 17 per cent to RM245.4 million.
Its earnings per share for the quarter grew to 3.62 sen per share, from 3.44 sen per share, according to filing on Bursa Malaysia today.
Hartalega declared a first interim single-tier dividend of 2.2 sen per share, payable on December 28 this year.
The company attributed its improved performance to stronger demand for nitrile gloves and higher average selling price, in tandem with the increase in nitrile cost.
It said sales volume had grown 10.6 per cent during the quarter. However, it was partially offset by the other operating expense of RM11.1 million and as finance costs grew to RM2.52 million from RM1.86 million.
Hartalega managing director Kuan Mun Leong said the company remained confident about its outlook.
“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,” he added.
Hartalega delivered its first shipment of the world’s first anti-microbial gloves (AMG) to a major German medical supplies company in September.
“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,” Kuan said.