By Ben Otto
Malaysia's Top Glove Corp. Bhd. posted a steep drop in fourth-quarter net profit amid normalizing demand for protective gloves and a lower sales in the U.S. due to a temporary ban on the company's exports.
The world's largest glovemaker said Friday that net profit in the quarter ended August fell about 48% to 607.9 million ringgit ($146.2 million), affected by lower sales volume and selling prices. Revenue dropped about 32% to MYR2.12 billion.
For the full year, the company's fortunes soared on rising demand and higher prices for protective wear amid the Covid-19 pandemic. Fiscal-year profit rose to MYR7.87 billion from MYR1.75 billion a year ago, while revenue climbed to MYR16.40 billion from MYR7.24 billion.
Top Glove said it is confident that demand for gloves would continue to trend upward, although accelerating vaccination rates have hastened the moderating of demand and tapering of prices. It expects global demand for gloves to grow 15% annually, up from 10% before the pandemic began.
It expects sales will get a boost from the U.S.'s move this month to lift the ban on the company's imports. Top Glove exports from Malaysia to the U.S., which account for 15% of total sales, had been barred for months pending an inquiry into its labor practices.
Top Glove also said it will seek shareholder approval to renew its authority to buy back to up to 10% of its shares.
Write to Ben Otto at firstname.lastname@example.org
(END) Dow Jones Newswires
September 17, 2021 02:10 ET (06:10 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.