Hartalega (5168) investor relations material

Executive summary

• Revenue for Q4 FY2026 was RM515.4 million, down 15.7% year-over-year due to a 21.3% drop in average selling price (ASP) from MYR appreciation, though sales volume rose 0.5%.

• Operating profit for Q4 FY2026 increased to RM33.9 million from RM9.6 million in Q4 FY2025, driven by cost optimisation and operational efficiencies.

• Net profit for Q4 FY2026 was RM40.0 million, up from RM14.6 million a year earlier, supported by improved margins and favourable forex.

• For FY2026, revenue declined 17.4% to RM2.1 billion, but operating profit rose 72.3% to RM91.7 million due to higher plant utilisation and automation.

Financial highlights

• Q4 FY2026 profit before tax was RM50.3 million, up 185% year-over-year; net profit attributable to equity holders was RM40.5 million, up 179%.

• FY2026 net profit attributable to equity holders was RM103.0 million, up 38.2% year-over-year.

• Earnings per share for Q4 FY2026 was 1.19 sen (vs 0.42 sen in Q4 FY2025); FY2026 EPS was 3.02 sen (vs 2.18 sen in FY2025).

• Cash and cash equivalents at year-end stood at RM1.1 billion, up from RM886 million a year earlier.

Outlook and guidance

• Management expects sustained recovery and long-term growth in glove demand, with ongoing focus on operational excellence and cost optimisation.

• Higher capacity utilisation and efficiency gains anticipated to support margin recovery.

• Near-term market volatility expected due to geopolitical tensions and elevated input costs, especially from crude oil price increases.

• The group is enhancing supply chain resilience and maintaining flexibility in production and market strategies.