Coronavirus | Malaysia's Top Glove reports record net profit

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Coronavirus | Malaysia's Top Glove reports record net profit

Last week KUALA LUMPUR - Malaysia's Top Glove Corporation Bhd reported a 485% increase in its third-quarter net profit as the CoVID 19 pandemic led to strong demand for gloves.

The world's largest medical glove manufacturer had posted record profits for the four straight quarters prior to the pandemic, bolstered by people using more gloves due to increased hygiene awareness in the period.

In a stock exchange filing, the firm said its net profit for the period of May jumped to 2.1 billion ringgit from the 347.9 million ringgit a year ago. According to Refinitiv data, UBS had a profit of 2.54 billion ringgit.

Its revenue rose from 3.69 billion ringgit to 4.16 billion ringgit.

The stocks of Top Glove, which were suspended before it was announced for its earnings, rose on Wednesday to 0.2%. They have nearly 22% this year.

Top Glove, which produces 100 billion gloves a year, said average selling prices, which had fallen in February, declined during the period and it made adjustments in line with glove market pricing trends.

It also said that it had reduced its sales volume in the previous quarter mainly due to a temporary drop in sales from Malaysia, following a U.S. Customs and Border Protection order suspension.

However, global glove demand continues to rise as glove use continues to, driven by the ongoing pandemic, said the newspaper.

Last July the U.S. Customs prohibited the import of Top Glove products, citing evidence of forced labour practices at the company's production facilities across Malaysia.

The U.S. port CBP subsequently instructed the firm to seize the firm's goods.

The manufacturer is working on a solution to remove CBP Ban from the industry.

Top Glove said in April that it had verified all indicators of forced labour in its operations and this was resolved by the London-based ethical trade consultant Impactt Limited.

The U.S. action has stalled the progress of Top Glove with the listing of $1bn to Hong Kong as potential investors raised concerns about the impact. Reuters reported.

Top Glove has said it remained committed to the listing.

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