Hartalega (5168) Q3 2026 earnings summary

Executive summary

• Revenue for Q3 FY2026 was RM527 million, down 29% year-over-year due to lower sales volume and pricing pressure, especially in non-U.S. markets impacted by Chinese competition and currency effects.

• Operating profit for Q3 FY2026 increased slightly to RM36.3 million, supported by cost optimisation and efficiency gains.

• Net profit for Q3 FY2026 rose 64.1% year-over-year to RM31.7 million, with improved margins despite revenue decline.

• For the nine months ended 31 December 2025, revenue was RM1.62 billion, down 17.9% year-over-year, but operating profit increased 32.5% to RM57.7 million.

Financial highlights

• Q3 FY2026 revenue: RM527.3 million (Q3 FY2025: RM738.2 million).

• Q3 FY2026 operating profit: RM36.3 million (Q3 FY2025: RM35.7 million).

• Q3 FY2026 net profit: RM31.7 million (Q3 FY2025: RM19.3 million).

• 9M FY2026 revenue: RM1.62 billion (9M FY2025: RM1.97 billion).

• 9M FY2026 net profit: RM61.9 million (9M FY2025: RM59.8 million).

• Earnings per share for Q3 FY2026: 0.93 sen (Q3 FY2025: 0.57 sen).

Outlook and guidance

• Long-term industry prospects remain positive due to higher hygiene awareness and healthcare access.

• Near-term challenges include global overcapacity, intense price competition, and cost pressures, especially from Chinese manufacturers.

• Ongoing investments in automation, technology, and ESG initiatives are expected to support competitiveness and margin resilience.