In a filing with Bursa Malaysia, the group said the downturn was caused by reduced glove sales and a decline in average selling prices (ASP), attributed to an ongoing oversupply within the market.

Revenue slumped 69% to RM821.86 million from RM2.69 billion in FY2022.

For the fourth quarter ended June 30, 2023, (Q4 FY2023), the group concluded its fiscal year with a net loss of RM7.17 million.

This marked the group’s third consecutive quarterly loss. It posted a net loss of RM39.92 million in Q3 FY2023 and RM108.07 million in Q2 FY2023.

Revenue tumbled 25.6% to RM223.37 million, from RM300.23 million a year ago. The group posted revenues of RM175.74 million and RM174.79 million in Q3 FY2023 and Q2 FY2023, respectively.

The glove manufacturer said in its filing that the recent quarterly deficit was due to reduced ASP for gloves, sluggish worldwide market demand and reduced excess inventory among buyers.

Furthermore, the continued enforcement of the withhold release order (WRO) by the US Customs and Border Protection since October 2021 has also impacted the group’s financial performance.

Another factor contributing to the loss is a rise in operational expenses due to elevated utility costs.

Supermax has closed down four of its outdated facilities in the past two years.

Moving forward, the group anticipated that the ASP would continue to be subdued, projecting a substantial market rebound to potentially occur only in the latter part of 2024.

It also remains dedicated to building six advanced and highly efficient manufacturing facilities. The group is now gradually installing these production lines, taking into account prevailing market conditions.

As at 12.29pm, Supermax’s share price rose 0.5 sen or 0.64% to 79 sen, giving the group a market capitalisation of RM2.14 billion.