Top Glove Corp Bhd, the world's largest rubber glove manufacturer, expects a 10 per cent growth in net profit and revenue in the current financial year ending Aug 31, 2011.

Its chairman, Tan Sri Lim Wee Chai, said this would be underpinned by the continued demand from emerging markets such as China, India and South America.

'Given the demanding environment and barring unforeseen circumstances, we maintain our expectation that the next financial results will be satisfactory,' he said at the briefing for fund managers, analysts and the media on its fourth quarter financial year 2010 results here today.

Lim said Top Glove, which has experienced consistent growth rate over the last five years, was now facing fluctuations in latex and crude oil prices as well as currency exposure.

'The company has incurred RM21 million in foreign exchange losses in the last financial year. The US dollar has weakened against the ringgit by around 13 per cent since beginning of the financial year 2010,' he said.

For the financial year ended Aug 31, 2010, Top Gloves recorded a higher net profit of RM250 million compared with RM168 million in the same period last year.

Revenue increased to RM2.08 billion from RM1.53 billion previously.

Its earning per share in the last financial year stood at 39.8 sen, up from 28.0 sen last year.

He sai the company was cautious as demand normalised, coupled with excess capacity situation.

'As such, consolidation is expected to take place among industry players.

'So we are looking at any opportunity for mergers and acquisitions especially nitrile gloves manufacturing plants in Thailand, Indonesia and Malaysia,' he said.

Nitrile gloves typically command a better margin compare to natural rubber.

Lim said the company was in talks with several small regional glove makers, adding that, this plan would materialise within a year.

The company has allocated between RM80 million and RM100 million for 2011 capital expenditure, he said.

He said Top Glove was also looking for about 20 to 30 hectares in the region for rubber plantation in an attempt to mitigate against rubber price fluctuations.

'We will try to get it done within three months,' he said.

To date, latex price has increased by 55 per cent and was expected to come down by 50 per cent in the next six months, Lim said. - Bernama