Revenue surged 49.4% to RM2.01 billion against RM1.34 billion previously due to higher sales revenue following the increase in average selling price, said the nitrile glove producer in a filing with Bursa Malaysia today.

In line with the growing rubber glove demand globally, the group said it would continue to expand its capacity in its Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang.

To date, eight out of 10 lines in Plant 7 had been commissioned. Upon full commissioning, Plant 7 would have an annual installed capacity of 2.7 billion pieces.

“The construction for the upcoming expansion under NGC 1.5, is currently under way and the group targets to commission the first line by April 2022.

“NGC 1.5 includes four additional production plants which will contribute 19 billion pieces to the annual installed capacity,” said Hartalega.

With the completion of NGC 1.5, the group’s annual installed capacity will increase to 63 billion pieces per annum.

The average selling prices for gloves has been declining from its peak in the first half of the financial year moving into the second half of the financial year.

The tapering of average selling prices in recent months is due to increased supply from major glovemakers as well as moderating demand as customers adjust inventories in view of declining selling prices.

In a separate statement, Hartalega said that as a result of the group’s strong performance, it had declared a first interim dividend of 35.2 sen per share single tier for its financial year ending March 31, 2022, as per the entitlement date on Nov 18 and payable on Dec 2.

At the close on Bursa Malaysia today, Hartalega was eight sen higher to RM5.75 with 4.88 million shares traded.