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Top Glove profits up by 2030% to reach $781 million due to the increasing demand due to the Corona crisis

The Malaysian company Top Glove announced on Wednesday, December 9, a more than 20-fold jump in its net profit compared to the first quarter, outperforming the record profits for the past three months due to the high demand for gloves, their production efficiency and high selling prices, despite the high prices of raw materials and the difficulty of supplying them due to unfavorable weather conditions.

Where the growth of net profits during the period between September and November increased by 2030% to reach 2.38 billion Malaysian ringgits (equivalent to 781 million dollars), after it was 111.4 million last year, and its revenues increased by 294% to 4.76 billion Malaysian rings.

According to Refinitiv’s expectations, the company recorded a slightly weaker performance than expectations that estimated the company’s net profit of 2.48 billion Malaysian ringgit, and the company announced record numbers for quarterly net profits, which amounted to 1.29 billion Malaysian ringgit in the last period, and Top Glove said that sales orders The increasing growth of the company’s capabilities and the development of its productivity will enhance the company’s future performance.

Top Glove closed some of its factories in Malaysia in stages last month after the outbreak of the Corona virus among more than 5,000 of its workers, and the company said that the temporary closure will lead to delays in the delivery of orders and a decrease in sales for this fiscal year by 3%.

Despite this, the company still has an optimistic view of the future, and according to its expectations, the demand for gloves will increase by 20% this year, by 25% next year and by 15% in the post-pandemic period, and the company’s net financial liquidity has reached 3.45 billion ringgit by the end of November, and the value of its shares trading in Singapore did not change, as it recorded 2.32 dollars on Wednesday, while its shares in Kuala Lumpur fell by 10 Malaysian sen (part of the ringgit) to reach 6.99 Malaysian ringgit.

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