Kuala Lumpur — Malaysia’s Top Glove Corp. Bhd announced on Friday that its global rollout of vaccines reduced demand for gloves, resulting in a 48% decline in fourth-quarter revenue.
The world’s largest manufacturer of medical gloves recorded a net profit of RM677.9 million ($ 145.88 million) from June to August. This lags behind an analyst’s estimate of RM8.69 billion, compared to RM1.17 billion a year ago.
Revenues were down 32% to RM2.11 billion, according to a submission to the stock exchange.
“”[The quarterly] With the normalization of demand after the deployment of high-dose vaccines, the results softened and the sales volume decreased. [prices], Which was inconsistent with the corresponding reduction in raw material prices, “the manufacturer said in a statement.
The previous ban on imports into the United States also continued to hurt sales during the period. However, the year-long ban on top gloves on suspicion of forced labor abuse was lifted last week.
Top gloves have hit their reputation as they were banned during record profits as the COVID-19 pandemic boosted demand for gloves.
The company said on Friday that the lifting of the ban is expected to increase sales from its Malaysian business to the United States. The United States, which accounts for 15% of the Group’s total sales, sees a difficult and competitive business environment.