DESPITE a 21 per cent increase in revenue to RM1.16 billion , Singapore-listed Malaysia company Top Glove turned in a marginally lower net profit of RM105.8 million for the second quarter ended Feb 28, as finance costs increased more than seven times.
The rubber glove maker's net profit for the three months was 3.0 per cent lower than the RM109.0 million for the corresponding period a year ago. Revenue of the firm improved 21 per cent year on year from RM958.4 million, thanks to sales volume growth of 16 per cent - higher than the projected global demand of about 10 per cent a year - as well as a higher average selling price.
But the firm's finance costs ballooned to RM19.9 million for the period from RM2.7 million a year ago, resulting in a hit to its bottom line. Its earnings per share for the second quarter was 4.14 sen, slightly lower than 4.31 sen for the corresponding period of 2018, with the latter having been adjusted to reflect the bonus issue of one bonus share for every one existing ordinary share which was completed on Oct 29, 2018.Its loans as at Feb 28 stood at RM 2.17 billion, markedly higher than the RM585.3 million a year ago.