KUALA LUMPUR, Kossan Rubber Industries Bhd posted a higher net profit of RM58.72 million in the first quarter ended March 31, 2019 (Q1 2019), attributable to improvements in all three divisions, namely gloves, technical rubber products (TRP) and clean room.
The company’s net profit stood at RM44.51 million in the corresponding period last year.
In a filing with Bursa Malaysia today, Kossan said its revenue during the quarter climbed to RM561.47 million from RM484.18 million in Q1 2018.
It said the gloves division’s revenue rose 18.52 per cent year-on-year (y-o-y) to RM496.99 million in Q1 2019 from RM419.31 million in Q1 2018 due to the higher volume of glove products sold (rose 18.8 per cent y-o-y) in the quarter under review.
“The TRPs division’s revenue rose 7.12 per cent y-o-y to RM46.68 million in Q1 2019, mainly attributable to higher sales deliveries, favourable raw materials prices and sales of higher margin products,” it said, adding that the cleanroom division recorded revenue of RM17.11 million in Q1 2019 from RM20.37 million previously.
On this year’s prospect, the world’s third-largest glove maker projected growth for gloves to remain resilient as global demand for the product is expected to grow to 300 billion pieces in 2019.
“Despite rising costs and heightened competition, Kossan has continued to pursue its transformation and growth strategies, focusing on cost savings as well as improvements in production technology and operating efficiency and the management is confident that FY2019 will be a growth year for the group,” it added.
Source: BERNAMA (News Agency)