Top Glove reported narrowing core losses in 3QFY24. This reflects volume sales growth (+13% q-o-q) amid a sequential demand recovery and rising ASP trends, offsetting surging raw material costs (+16-20% q-o-q).
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3QFY24 results within expectations.
Top Glove (SGX:BVA) reported a narrowing 3QFY24 core net loss of RM53.5m (-31.3% q-o-q, -50.4% y-o-y) on the back of higher revenue of RM636.9m (+15.7% q-o-q). Headline net profit was in the black in the quarter, mainly reflecting multiple non-core gains such as reversal for inventories written down, gains from land disposal, unrealised forex gains and others amounting to RM104m.
3QFY24 volume sales strengthened about 13% q-o-q, reflecting better demand as customers ramped up inventories replenishment. Meanwhile, ASP expanded 3% q-o-q to about US$19/’000 pcs to pass through higher input costs such as nitrile and latex prices which have surged 16- 20% q-o-q.
Positively, utilisation rate for the quarter saw better improvement to around 44% based on current effective capacity of about 60b pieces annually (2QFY24: Around 39%).
Accelerating sales recovery momentum.
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Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
