Kossan Rubber Industries Bhd posted a net profit of RM31.45 million for the three months ended March 31, 2024 (1QFY2024), compared to a net loss of RM24.25 in 1QFY2023, on higher sales volume and lower natural gas prices.

KUALA LUMPUR (May 21): Glove manufacturer Kossan Rubber Industries Bhd (KL:KOSSAN) has posted its third consecutive quarter of profits in the first quarter, thanks to higher sales volume and lower natural gas prices.

Net profit for the three months ended on March 31, 2024 (1QFY2024) was RM31.45 million compared to a net loss of RM24.25 in 1QFY2023, Kossan said in an exchange filing. Revenue for the quarter climbed 14.4% year-on-year to RM451.63 million from RM394.71 million.

For its mainstay glove division, Kossan flagged challenges from the persistent gap in supply and demand in the industry, as well as the pressure from international competitors on average selling prices. The company also anticipates a minor increase in raw material prices and volatile natural gas prices.

“Despite the obstacle, the long-term outlook for glove demand remains positive, driven by stricter standards and increased hygiene awareness in medical and industrial sectors,” it said.

The company also expects its technical rubber products division — which makes custom products ranging from dock fenders to gaskets and from insulators to industrial rollers — to be supported by a gradual increase in global economic activity and infrastructure investment.

During 1QFY2024, the glove division reported a turnaround with a profit before tax of RM26.57 million, compared to a loss before tax of RM34.9 million in 1QFY2023. Meanwhile, the technical rubber division climbed 12.7% in profit before tax to RM8.92 million from RM7.92 million.

The group did not declare any dividend for the quarter under review.

Shares of Kossan were down four sen or 1.61% to close at RM2.44 on Tuesday, valuing the group at RM6.24 billion ahead of the results announcement. Year to date, the counter has surged 29.8%.