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Hartalega Revenue Exceeds RM1b For First Time
Posted Date : 08th May, 2013
Written by Shalini Kumar of theedgemalaysia.com
KUALA LUMPUR: Hartalega Holdings Bhd saw a 16.5% increase in net profit to RM234.72 million for the financial year ended 31st March (FY13) on higher production output that resulted in its revenue surpassing the RM1 billion mark for the first time.
For the fourth quarter (4Q), the world's largest synthetic gloves manufacturer recorded a net profit of RM62.4 million, a 37.58% increase from RM50.06 million recorded in FY12. Revenue rose by 12.3% to RM269.77 million.
In a statement to Bursa Malaysia yesterday, Hartalega said the group's revenue reached RM1.03 billion in FY13, up from RM931.05 million a year ago. Earnings per share increased to 32.10 sen from 27.65 sen previously.
In view of the strong results for FY13, the group has proposed a final interim dividend of 3.5 sen per share. This brings the total dividend for the full year to 14 sen per share, an increase from 12 sen paid out in FY12.
Hartalega said the increase in revenue was in line with the group's continuous expansion in production capacity and an increase in demand.
"These results are due to our meticulous strategy and planning. We are committed to improving our efficiencies with a view to expanding capacity, and we are confident that we will continue to do this in the new financial year," said Hartalega managing director Kuan Mun Leong.
"We are well-prepared to meet the growing demand in the global glove market as a result of our ongoing strategic expansion efforts which will be coming to fruition in the years ahead.
"In fact, Plant 6 is on track to come fully on stream in July 2013, which will significantly boost our production capacity."
Currently, the group operates 43 production lines with a capacity to produce over eight billion surgical and examination gloves annually.
In April, Hartalega saw its share price pushed up significantly as the H7N9 avian flu virus outbreak in China worsened.
Kuan, however, believed the price rally was more on the group's strong fundamentals than the avian flu outbreak.
Hartalega hit an all-time high of RM5.53 during intra-day trading before closing at RM5.45 yesterday.
This article first appeared in The Edge Financial Daily, on 8th May, 2013.