PETALING JAYA: Kossan Rubber Industries Bhd’s net profit for its third quarter ended Sept 30 rose 51.5% to RM528.2 million from RM348.74 million reported in the same quarter of the previous year on the back of higher average selling price (ASP) from the gloves division.
Revenue for the quarter stood at RM1.3 billion, a 26.1% improvement over RM1.03 billion reported previously due to higher revenue from the gloves and clean-room division.
For the nine months period, the group’s net profit rose over 383% to RM2.63 billion from RM544.6 million reported in the same quarter of the previous year mainly due to the higher ASP in the gloves division. Revenue for the period jumped 144% to RM5.73 billion from RM2.35 billion reported previously due to higher revenue from all three divisions.
Kossan declared a third interim dividend of 12 sen per share to be paid out on Nov 19.
Going into the Q4’21, the group foresees a gradual easing of gloves’ ASP due to the ongoing vaccinations and higher vaccination rates recorded in the developed and developing countries, as Covid-19 cases categorised as severe have declined. These external factors notwithstanding, the group expects the result for its Q4 to be within expectation and the full overall year to be satisfactory.
Kossan is prepared for the post-pandemic period with a focus on operating efficiency, manufacturing excellence, research & development and innovation. Post-pandemic, it believes the demand for gloves will continue to undergo structural growth as a result of increased healthcare standards and hygiene awareness in both the medical and non-medical sectors.