KUALA LUMPUR (June 21): Comfort Gloves Bhd’s net profit for the first quarter ended April 30, 2021 (1QFY22) surged by more than 13 times to RM219.13 million, from RM16.34 million a year earlier, on higher sales volume and average selling prices (ASPs), as well as better economies of scale.
Earnings per share (EPS) jumped to 37.75 sen from 2.8 sen, the glove maker’s filing with Bursa Malaysia showed.
Revenue rose 254% to RM541.24 million against RM152.91 million for 1QFY21.
Quarter-on-quarter (q-o-q), net profit grew 84.11% from RM137.87 million for 4QFY21, while revenue increased 69.72% from RM318.9 million.
The group declared an interim dividend of four sen, to be paid on July 22.
Comfort Gloves said four double former dipping lines were completely commissioned during the quarter.
“We plan to commission an additional seven double former dipping lines, which [are] expected to be completed towards the end of the financial year ending Jan 31, 2022 (FY22). With all the completed production facilities, the group will be capable of producing up to 8.6 billion gloves per annum,” it said.
Comfort Gloves expects global glove consumption to increase in the long run as a result of continuing increase in usage of gloves as a protective barrier in the healthcare sector and an increase in hygiene awareness of non-healthcare sectors, such as hospitality, food services and personal care, since the outbreak of Covid-19.
The group said it intends to capitalise on this opportunity to develop a steady customer base.
In a separate filing, Comfort Gloves said its board had resolved to withdraw the resolutions on the proposed allocation of awards to the group’s executive chairman Datuk Lau Eng Guang and his son Brian Lau Joo Kien under its employees’ share scheme from being tabled for shareholders’ approval in the 80th annual general meeting (AGM) tomorrow.
The group said it had received a letter of withdrawal from the two of them.
Comfort Gloves shares were up five sen or 2.39% at RM2.14 in afternoon trading today, giving the group a market capitalisation of RM1.25 billion.
