KUALA LUMPUR: Hartalega Holdings Bhd posted a net profit of RM3.24bil in its financial year ended March 31, 2022, a 12.1% increase over RM2.89bil in the previous year on the back of higher revenue.

       The glove maker reported revenue of RM7.89bil in FY22, a 17.67% improvement over the 2021 financial year.

       Earnings per share for the year was 94.64 sen as compared with 84.43 sen previously.

       However, Hartalega said in a statement that it recorded a net loss of RM197.9mil in the fourth quarter of FY22 due mainly to the provision of the Prosperity Tax.

       According to the group, pre-tax profit slumped 85.5% y-o-y to RM218.38mil while revenue dropped 58% y-o-y to RM968.69mil as a result of normalising average selling prices (ASP), lower sales volume and higher operating cost.

       On the back of this performance, the board of directors declared a third interim single-tier dividend of 3.5 sen per share with the entitlement date on May 26, 2022, and payable on June 9, 2022.

       "As we look towards FY2023, we expect prospects to remain, even as we enter into the endemic phase.

       "For the glove sector, current ASPs seem to have bottomed out and the opening of international borders and easing of travel restrictions is expected to relieve the current shortage of workers, which will be of benefit to Hartalega,” said Hartalega CEO Kuan Mun Leong.

       Over the longer term, he expects a structural organic step-up in global demand for gloves due to increased glove used usage in emerging markets with a low glove consumption base and increased awareness of hygiene among healthcare practitioners.

       He added that the expansion of the Next Generation Integrated Glove Manufacturing Complex (NGC) 1.5 is on track and expects to gradually commission the first production line by the fourth quarter of this year.

       However, he noted the presence of external pressures including the Russia-Ukraine conflict and the lockdown in major cities in China, which is expected to further impact the already strained global supply chain.

       On the domestic front, Kuan said the recent implementation of the new minimum policy wage, which is likely to result in higher operating costs for the manufacturing sector.

       "Amidst this challenging backdrop, we are focused on cost optimisation, continuous efficiency improvement and automation initiatives across our operations to ensure the sustainability and resilience of the group," he added.