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PETALING JAYA: Kossan Rubber Industries Bhd posted a more than eightfold increase in net profit to RM1.07 billion for its second quarter ended June 30, 2021, from RM131.06 million in the same quarter of the previous year mainly due to higher average selling price (ASP) and higher demand in the glove division.

Revenue for the quarter grew over three times to RM2.24 billion from RM701.68 million previously due to the higher revenue from all three (glove, technical rubber, clean-room) divisions.

For the first half of the financial year ended June 30, 2021, its net profit stood at RM2.11 billion, a 975.6% increase from RM195.86 million reported in the same half of the previous year mainly due to the higher ASP and higher demand in the glove division.

Revenue for the period stood at RM4.43 billion, a 237.4% increase from RM1.31 billion previously, with increases in all three divisions.

The group declared a second interim dividend of 12 sen per share to be paid out on Aug 26, 2021.

Kossan said the Covid-19 pandemic has led to a significant increase in demand for personal protective equipment including protective gloves.

Subsequently, it noted, the Malaysian Rubber Glove Manufacturers Association projected annual global demand growth of 15-20% moving forward, with global demand at 420 billion pieces for 2021 against 360 billion pieces in 2020.

With Kossan’s strong relationships with its customers coupled with higher demand for its products in the glove and clean-room divisions as well as a stable technical rubber product division, it is confident that 2021 will be an exceptional year for the group.

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