Hartalega (5168) Q4 2026 earnings summary

Executive summary

• Q4 FY2026 saw sustained earnings driven by cost optimization and automation efficiencies, despite a marginal revenue decline due to lower ASP and a stronger MYR.

• Sales volume increased 3% quarter-over-quarter and 4% year-over-year, with utilization rate rising to 74%.

• Operating profit for Q4 FY2026 increased to RM33.9 million from RM9.6 million in Q4 FY2025, driven by cost optimisation and operational efficiencies.

• Net profit for Q4 FY2026 was RM40.0 million, up from RM14.6 million a year earlier, supported by improved margins and favourable forex.

• For FY2026, revenue declined 17.4% to RM2.1 billion, but operating profit rose 72.3% to RM91.7 million due to higher plant utilisation and automation.

Financial highlights

• Revenue for Q4 FY2026 was RM515.4 million, down 15.7% year-over-year and 2% sequentially, mainly due to a 21.3% drop in ASP from MYR appreciation.

• EBITDA rose to RM91 million (15% margin), up from RM70 million (12% margin) in the previous quarter.

• Profit after tax increased 240% year-over-year to RM29 million, with PAT margin improving to 8%.

• Q4 FY2026 profit before tax was RM50.3 million, up 185% year-over-year; net profit attributable to equity holders was RM40.5 million, up 179%.

• Net cash position stood strong at RM1.1 billion as of end-March 2026.

Outlook and guidance

• Sector recovery is on track, with global glove demand stabilizing above pre-pandemic levels and expected to grow at ~6% CAGR.

• 1H CY2026 demand is set to rise, driven by global healthcare recovery, but supply chain risks from Middle East tensions could impact margins.

• Company is operating at near-full capacity (excluding hibernated plants), with ongoing margin protection strategies including disciplined ASP increases.

• Management expects sustained recovery and long-term growth in glove demand, with ongoing focus on operational excellence and cost optimisation.

• Near-term market volatility expected due to geopolitical tensions and elevated input costs, especially from crude oil price increases.