KUALA LUMPUR: Hartalega Holdings Bhd’s net profit rose 79.3 per cent to RM32.8 million in the second quarter ended Sept 30, 2026 (Q2 FY27), from RM18.3 million a year earlier, supported by higher average selling prices (ASPs) and cost optimisation efforts.
Revenue increased 19.5 per cent to RM644.7 million from RM539.7 million in the corresponding quarter last year, mainly driven by higher ASPs while sales volume remained broadly stable.
The group said higher selling prices helped offset rising raw material costs amid the Middle East conflict, which had pushed nitrile costs significantly higher year-on-year. However, the increases were not fully passed on to customers.
Operating profit almost tripled to RM40.4 million from RM13.7 million, reflecting pricing discipline and cost optimisation initiatives, including tighter cost controls and improved production efficiency.
However, compared with the preceding quarter, Hartalega’s operating profit fell 49.5 per cent from RM80 million, despite recording higher revenue.
Hartalega attributed the decline to a sharp drop in ASPs towards the end of the quarter, which was insufficient to offset high raw material costs. Higher net foreign exchange losses also weighed on profit.
For the six months ended Sept 30, 2026, revenue increased 14.4 per cent to RM1.25 billion from RM1.09 billion a year earlier, while profit after tax rose to RM102.9 million from RM30.2 million.
The group recorded an operating profit of RM120.4 million for the six-month period, compared with RM21.4 million previously, with its operating margin improving to 9.6 per cent from two per cent.
Hartalega declared no dividend for the current quarter.
Looking ahead, the group remains positive on the long-term fundamentals of the global glove industry, supported by recurring healthcare demand and higher hygiene standards.
However, it cautioned that excess global manufacturing capacity, intense price competition and geopolitical uncertainties would continue to weigh on the industry’s pricing power and profitability.
Hartalega said it would focus on timely selling-price adjustments to manage higher input costs, while continuing to improve manufacturing efficiency through automation and production upgrades.
Plant 9 is now fully operational, while five production lines at Plant 3 had been recommissioned using its production technologies and operating practices by the end of Q2 FY27.
“The group will continue the progressive recommissioning of Plant 3 and subsequently Plant 4.
“Capital expenditure will remain focused on upgrading and automating manufacturing processes and production lines, including selected AI-enabled applications,” Hartalega said.
Hartalega is one of the world’s leading manufacturers of nitrile gloves, supplying healthcare and industrial customers in international markets.