KUALA LUMPUR, Dec 20 — Top Glove Corporation Bhd has returned to the black, posting a net profit of RM5.47 million in the first quarter ended Nov 30, 2024 (1Q FY2025), rebounding from a RM57.71 million net loss in Q1 FY2024.

Revenue surged 80 per cent to RM885.89 million in 1Q FY2025, compared to RM493.45 million in the same quarter last year.

In a filing with Bursa Malaysia today, the glove manufacturer attributed the rebound to robust and consistent order inflows, which boosted the utilisation rate to 66 per cent across its operating factories.

"Driving the strong growth in sales volume were continued glove replenishment activities and increased inflow of US orders ahead of the 50 per cent tariff on glove imports from China. Further increases in sales volume are expected to follow,” it said.

The group added that its ongoing quality enhancement and cost optimisation initiatives, in line with its steadfast commitment to operational excellence, further supported the recovery.

"Additionally, the strengthening of the US dollar against the ringgit during the quarter under review helped improve margins,” it said.

On its prospects, Top Glove expressed optimism, highlighting steady recovery in the glove industry and continued inflow of orders.

"Its unwavering focus on operational excellence, robust industry fundamentals and increased health and hygiene awareness post-pandemic are expected to drive sustained demand growth.

"Furthermore, the group is well positioned to benefit from trade diversions arising from United States tariffs on China-produced gloves, creating new opportunities in key markets. These impacts are anticipated to become more pronounced from 2Q FY2025 onwards,” it said.

In a separate statement, Top Glove’s managing director, Lim Cheong Guan described the group’s exceptional profitability increase as a significant milestone on its recovery and journey growth.

"This achievement is attributed to the encouraging recovery in market demand, which has significantly boosted sales orders, our ability to command average selling prices and cost pass-through, and continuous efforts to improve our glove quality and cost efficiency,” he added. — Bernama