By Ying Xian Wong


Top Glove Corp.'s profit plunged due to a slowdown in orders and lower average selling prices.

The firm's net loss in its fourth quarter ended August was 52.59 million ringgit ($11.6 million), compared with net profit of MYR447.4 million in the same period a year earlier, it said Tuesday.

Revenue for Top Glove, the world's largest glove maker, fell 52% on year to MYR990.10 billion.

Top Glove said it was unable to pass on the escalating costs to customers amid the ongoing oversupply in the industry, thus hurting its bottom line.

For the full fiscal year, the company's net profit was MYR235.97 million, compared with MYR7.71 billion the year before.

Based on the industry's experience, a period of adjustment is to be expected after each pandemic, said Top Glove Managing Director Lim Cheong Guan.

"Owing to the 'perfect storm' of normalising demand and average selling prices, alongside increased production capacity however, the recovery timeline is more protracted than usual," he said in a statement.

He thinks the setback is temporary and part of the business cycle and said the company try to recapture U.S. sales as well as focus on operational efficiency and cost rationalisation.


Write to Ying Xian Wong at yingxian.wong@wsj.com


(END) Dow Jones Newswires

09-20-22 0221ET