Hartalega (5168) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue rose 78% year-over-year to RM738 million, driven by a 73% increase in sales volume and higher ASP, with plant utilisation and operational efficiency improvements.

• Operating profit turned positive at RM36 million, reversing a loss in the previous quarter and year, with margin improving to 4.9%.

• Net profit reached RM19.5 million, up 111% sequentially, though down 17% year-over-year.

• EBITDA recovered to RM77 million from a loss of RM11 million in Q2, with a margin of 10.4%.

• For the nine months ended 31 Dec 2024, revenue grew 51% to RM2.0 billion, with operating profit turning positive at RM44 million.

Financial highlights

• Q3 FY2025 revenue: RM738 million (+78% YoY); 9M FY2025 revenue: RM1.97 billion (+51% YoY).

• Sales volume increased to 7.6 billion pieces, up 12% quarter-on-quarter and 69% year-over-year.

• Q3 operating profit: RM36 million (vs. loss of RM8 million YoY); 9M operating profit: RM44 million (vs. loss of RM11 million YoY).

• Q3 net profit: RM19.3 million; 9M net profit: RM59.8 million (vs. loss of RM0.5 million YoY).

• Cash and cash equivalents at 31 Dec 2024: RM820–827 million.

Outlook and guidance

• Market recovery is underway, aided by restocking and higher US tariffs on Chinese gloves, benefiting Malaysian producers.

• Global glove demand projected to grow at a 6%-8% CAGR over the long term, with expectations to return to or exceed pre-pandemic levels.

• Persistent global oversupply and strong competition continue to pressure ASPs; shipping constraints and front-loading by US customers may moderate short-term demand.

• Focus remains on operational efficiency, automation, and ESG leadership.