Hartalega (5168) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue 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.

• Sales volume grew 1.7% quarter-over-quarter to 6.0 billion pieces but fell 11.8% year-over-year.

• Profitability improved, with profit after tax rising 50% quarter-over-quarter and net profit up 108% year-over-year to RM17.9 million.

• Cost optimisation and efficiency initiatives drove margin improvements and a robust net cash position of RM1.1 billion.

• EBITDA margin increased to 11.9%.

Financial highlights

• Revenue for Q2 FY2026 was RM540 million, down from RM553 million in Q1 and RM652 million in Q2 FY2025.

• Operating profit rose to RM14 million from RM8 million in Q1, reversing a loss of RM27 million in Q2 FY2025.

• Profit before tax increased to RM23.5 million, up 64.3% quarter-over-quarter and a turnaround from a RM47.5 million loss year-over-year.

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

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

Outlook and guidance

• Global glove demand is forecasted to grow at a healthy CAGR of 7%-9% long-term, with demand surpassing pre-pandemic levels and restocking underway.

• Recovery in demand is expected as healthcare consumption normalizes and restocking progresses.

• Malaysian manufacturers may benefit from shifting US-China trade dynamics, but near-term demand faces uncertainties from U.S. tariff policies and intensified competition from Chinese manufacturers.

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