KUALA LUMPUR (Nov 21): Improved margins that led to lower costs of both natural rubber and synthetic latex has helped narrow Comfort Gloves Bhd’s net loss for the third quarter ended Sept 30, 2023 (3QFY2023) to RM7.9 million, from RM17.8 million a year earlier.

This resulted in a lower loss per share of 1.37 sen, compared with 3.08 sen in 3QFY2022.

In a filing with Bursa Malaysia on Tuesday, the glove maker also attributed the smaller quarterly net loss to its efforts to continuously improve business operational efficiency to stay competitive, as well as a reversal of written down on inventory amounting to RM13.1 million.

Revenue for 3QFY2023 fell 43% to RM72.45 million, from RM126.79 million a year earlier, on lower sales quantity.

However, net loss for the cumulative nine months ended Sept 30, 2023 (9MFY2023) was still higher at RM41.24 million, compared with RM24.77 million a year ago, on lower revenue, which fell by nearly half year-on-year to RM252.24 million.

On current year prospects, Comfort Gloves said with the economies of most countries returning to pre-Covid-19 levels, the group’s revenue continues to be affected by intense competition from other market players.

"Despite the challenges amid the difficult operating environment during the year in review, the group is cautiously optimistic and expects to see sales trending higher in 2024, based on the rationales that the pandemic increased customer emphasis on health, as well as the rise in [the] adoption of health and wellness.

"We will continue to prioritise the need for us to be resilient and forward thinking to ensure our business’ long-term success, by adapting to market and consumer demand changes. The group is confident that it will continue to benefit from growing demand for its products in the glove industry," it added.

Comfort Gloves’ shares closed down 0.5 sen or 1.23% at 40 sen on Tuesday, giving it a market capitalisation of RM233.18 million. A total of 3.05 million shares exchanged hands. Its share price has fallen 16.7% year to date.