$TOPGLOV (7113.MY)$ announced its financial results for the first quarter delivering a sales revenue of RM886 million, a growth of 80% year-on-year and achieved a Profit After Tax of RM17 million.  While sales volume surged by 104% versus 1QFY2024.

The group said the rebound was fuelled by robust and continual order inflows, driving a higher utilisation rate of 66% across running factories, while enhancing cost efficiencies. Spurring the strong growth in Sale Volume was continual glove replenishment activity, as well as increased inflow of U.S. orders ahead of the 50% tariff on glove imports from China, with further increases in Sales Volume expected to follow.

Also contributing to the better performance were healthier margins from continual glove replenishment activity. Its recovery was further supported by the Group's ongoing quality enhancement and cost optimisation initiatives, in line with its steadfast commitment to operational excellence. Additionally, the strengthening of the U.S. Dollar (USD) against the Malaysian Ringgit (MYR) during the quarter in review helped to improve margins.

Top Glove had in August and September 2024 revised its Average Selling Prices (ASPs) upward, following higher raw material costs and a weaker USD in 4QFY2024. The effects of these price adjustments came in only towards the end of 1QFY2025, with the full impact expected to be reflected in 2QFY2025.

Going forward, the group said it remains positive, with orders continuing to flow in as the glove industry recovers steadily. Its unwavering focus on operational excellence, alongside robust industry fundamentals and increased levels of health and hygiene awareness post pandemic, are also expected to drive continual demand growth.