Hartalega's Q1 earnings shrink as 'global glove sector recalibrates'
Hartalega said the performance for the quarter was affected by a reduction in average selling prices (ASPs), as well as lower sales volume primarily owing to front-loaded inventories held by US customers and deferred orders in response to ongoing tariff developments.
"At the same time, pricing pressures intensified in non-US markets, driven by excess supply from Chinese manufacturers.
"Operating profit was also affected by the lower ASPs, strengthening of the ringgit and less favourable cost absorption resulting from lower capacity utilisation," it added.
Meanwhile, Hartalega's quarterly revenue declined to RM553.11 million from RM583.84 million previously.
As a result, its earnings per share for the period came in lower at 0.37 sen compared to 0.94 sen in 1Q25.
Hartalega chief executive officer Kuan Mun Leong said the first quarter reflects the ongoing recalibration taking place in the global glove sector.
He said with overcapacity still persisting and operating costs rising, competition remains intense, especially from China and other regional manufacturers.
He added that uncertainty surrounding US tariff policies continues to weigh down on demand, especially in the US market, while also prompting a shift in long-term sourcing strategies among US importers.
"Nevertheless, we are anchored by our long-term strategy, focusing on enhancing production efficiency and cost optimisation, investing in advanced automation, maintaining robust fiscal discipline, and sharpening our sales approach to strengthen Hartalega's competitiveness and resilience," he said.
Kuan said while near-term conditions are challenging, structural glove demand for rubber gloves continues to hold strong prospects, driven by growing global healthcare needs and hygiene awareness.
He noted that the group's focus remains on building long-term value while continuing to uphold best practices in responsible manufacturing and environmental, social and governance compliance.
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