Hartalega (5168) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 FY2026 was RM540 million, down 17.2% year-over-year due to a 13% drop in sales volume and a 5% decline in average selling price from currency effects.

• Operating profit improved to RM13.7 million from a loss of RM26.7 million in Q2 FY2025, driven by cost optimisation and efficiency gains.

• Profit before tax reached RM23.5 million, reversing a loss of RM47.5 million in the prior year quarter, mainly due to lower material costs and improved hedging.

• Net profit for the quarter was RM17.9 million, up 108% year-over-year.

Financial highlights

• Six-month revenue was RM1.1 billion, down 11.6% year-over-year, mainly from lower sales volume and adverse FX movements.

• Six-month operating profit rose 171% to RM21.4 million, supported by higher plant utilisation and automation.

• Earnings per share for Q2 FY2026 was 0.54 sen, up from 0.25 sen in Q2 FY2025.

• Cash and cash equivalents at period end were RM1.06 billion.

Outlook and guidance

• Long-term glove industry prospects remain positive, with global demand surpassing pre-pandemic levels and restocking activities underway.

• Near-term demand faces uncertainties from U.S. tariff policies and intensified competition from Chinese manufacturers in non-U.S. markets.

• The group is focused on automation, cost optimisation, and ESG compliance to maintain resilience.