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KUALA LUMPUR (May 18): Hartalega Holdings Bhd, whose share price has soared more than 70% this year, rang up record annual sales of RM2.92 billion for the financial year ended March 31, 2020 (FY20) compared with RM2.83 billion the year before.

The revenue growth was driven by 9% increase in sales volume, the group said in a filing today.

However, the nitrile glove maker’s annual net profit dropped 5% to RM434.78 million in FY20 against RM455.18 million in the previous financial year.

For the fourth quarter ended March 31, 2020 (4QFY20), Hartalega’s net profit expanded 28% to RM115.58 million versus RM90.33 million in the previous corresponding period. Revenue climbed 14% to RM777.9 million from RM683.23 million previously.

Nonetheless, on a quarterly basis, its net profit was lower compared with RM121.2 million in 3QFY20 — which was a record-high quarter.

In a statement today, Hartalega said the solid growth was achieved on the back of higher sales revenue, lower raw material cost and reduced energy cost, coupled with ongoing cost optimisation measures.

In view of the stellar set of results, the board has declared a third interim dividend of 2.05 sen per share for FY20 which will be payable on June 26.

Hartalega is the second-best performer among the 30 KLCI component stocks amid the frenzy buying interest on expectation of continued strong demand for rubber gloves moving forward as a result of the worldwide Covid-19 outbreak.

The stock has soared 67% year to date to a fresh peak of RM9.13 today. This translates into an increase of more than RM11 billion in market value to RM30.9 billion.

In comparison, Hartalega’s current market capitalisation has more than surpassed various local banks. For instance, AMMB Holdings Bhd is currently valued at RM8.8 billion, while Alliance Bank Malaysia Bhd RM3.19 billion and Affin Bank Bhd RM3.04 billion.

http://www.theedgemarkets.com/article/hartalega-posts-record-revenue-fy20-net-profit-drops

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