Hartalega Holdings, a Malaysian glove maker, experienced a decline in its shares following the announcement of its third consecutive quarterly loss. The company's shares fell by 4.2% to MYR2.05, resulting in a 26% decrease in value over the past 12 months.
Hartalega reported a loss of MYR52.5 million for the first quarter of its fiscal year, significantly lower than the profit of MYR88.3 million achieved during the same period last year. This decline was primarily attributed to reduced sales volume and average selling prices, which resulted from industry oversupply. Additionally, higher operating costs further contributed to the company's loss.
Compared to the previous year, quarterly revenue decreased by 48% to MYR440 million. Kuan Mun Leong, CEO of Hartalega, acknowledged the challenging market environment, attributing ongoing market imbalances, fierce competition, and rising operating costs as key factors affecting the company's margins. He emphasized the competitive nature of the rubber gloves market and expressed minimal success in passing incremental costs to customers.
Despite these challenges, Hartalega remains cautiously optimistic about the future. The company expects capacity rationalization efforts to continue and hopes that its five-year strategic plan will enhance operational efficiency and cost-effectiveness.
In conclusion, although Hartalega Holdings faces significant challenges in the manufacturing sector, it remains determined to improve its operations and looks forward to long-term prospects in the industry.
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