Hartalega (5168) Q4 2025 earnings summary

Executive summary

• Q4 FY2025 revenue was RM612 million, down 17% sequentially but up 15% year-over-year, with sales volume down 20% sequentially and up 9% year-over-year.

• Q4 operating profit was RM10 million, a 72% sequential drop but a turnaround from a loss in Q4 FY2024; PAT for Q4 was RM15 million.

• FY2025 revenue rose 41% to RM2.6 billion, sales volume increased 40% to 26.5 billion pieces, and operating profit reached RM53 million, reversing a prior loss.

• FY2025 profit after tax surged to RM74.4 million from RM19.8 million in FY2024, mainly due to higher sales and production efficiencies.

• Net cash position remained robust at RM919 million–RM923 million as of end-March 2025.

Financial highlights

• Q4 EBITDA was RM59 million, down from RM77 million in Q3, with an EBITDA margin of 9.6%.

• Q4 operating margin compressed to 1.6% from 4.9% in Q3; PAT margin at 2.5%.

• FY2025 operating margin improved to 2.1% from -1.3% in FY2024; PAT margin at 2.9%.

• Earnings per share for FY2025 was 2.18 sen, up from 0.37 sen in FY2024.

• Net assets per share as of 31 March 2025 stood at RM1.26, compared to RM1.36 a year earlier.

Outlook and guidance

• Glove sector recovery is on track, with global demand surpassing pre-pandemic levels in 2024 and a 24% year-over-year increase.

• Short-term demand expected to soften in 1H CY2025 due to front-loaded US inventories, with recovery anticipated in 2H.

• Long-term global glove demand projected to grow at a 6%-8% CAGR post-normalisation.

• Malaysian manufacturers may benefit from US-China trade tensions, but face ongoing global oversupply, price sensitivity, and rising operating costs.

• The company is focusing on operational optimization, automation, and ESG standards.