Meanwhile, the group’s revenue for the quarter fell 64.5% to RM530.62 million from RM1.49 billion in Q3 FY2023, according to the group’s filing with Bursa Malaysia today.

Managing director Lim Cheong Guan said: “We will continue to navigate the challenging business environment by improving our sales revenue, enhancing quality, eliminating wastage, optimising resource allocation, trimming expenditures and streamlining our processes, towards greater financial efficiency and sustainability.”

In response to the ongoing decline in global glove demand, the company had implemented several measures including shutting down outdated production lines and temporarily halting production at 17 of its 49 factories.

“By decommissioning these production lines, the company has effectively reduced its production capacity by five billion gloves, resulting in a total capacity of 95 billion gloves,” it stated.

The company has also undertaken a manpower restructuring exercise to optimise its workforce.

Despite the subpar quarterly results, the group managed to enhance its overall operating performance by reducing loss after tax by 23% compared to the previous financial quarter.

This improvement was attributed to a 6% increase in glove average selling prices (ASPs), as well as the implementation of quality and cost optimisation measures aimed at streamlining operations.

Lim said while the business environment is expected to remain challenging and competitive throughout the second half of 2023, the group is optimistic of its long-term prospects as gloves continue to be an essential item for single usage in the healthcare and food industries.

At market close, Top Glove’s share price was down by 10.55% or 12 sen to 90 sen, giving the group a market capitalisation of RM8 billion.