Revenue fell 54.1% to RM461.83 million from RM1.01 billion previously due to the ongoing intense global market competition given the excessive glove inventories and stock adjustment in the supply chain, it said in a filing with Bursa Malaysia today.

Revenue for the nine-month (9M) period fell 72.7% to RM1.89 billion, from RM6.92 billion for 9M FY2022.

In a separate statement, CEO Kuan Mun Leong said market conditions remained tough as the glove sector continued to be impacted by the current softened ASP due to ongoing global oversupply.

“This is compounded by increased energy costs for both natural gas and electricity tariffs as well as the implementation of the new minimum wage policy, resulting in increased pressure on operating margins for glove manufacturers,” he added.

He said in view of the challenging landscape, the company would continue to align its Next Generation Integrated Glove Manufacturing Complex (NGC) 1.5 expansion plan with the current market supply and demand dynamics.

“Beyond this, the company is focused on taking a long-term view, and we are optimistic on prospects for the sector over the long run.

“Once market dynamics reach an equilibrium, post-pandemic growth in global demand is expected on the back of increased glove usage, particularly in emerging markets with a low glove consumption base as well as improved hygiene and health awareness among healthcare practitioners,” Kuan said.

Hartalega ended the day down 4 sen, or 2.47%, to RM1.58, giving it a market capitalisation of RM5.42 billion.