KUALA LUMPUR (May 21): Hartalega Holdings Bhd (KL:HARTA) notched a turnaround in its final quarter, thanks partly to a provision reversal that also helped to bring the world’s second-largest glovemaker by volume back into the black for the year.

Net profit for the three months ended March 31, 2024 (4QFY2024) totalled RM15.12 million compared to a net loss of RM334.97 million over the same period a year earlier, Hartalega said in an exchange filing. In addition to the reversal of provision for a foreign subsidiary in bankruptcy during the quarter, the preceding year’s corresponding quarter was also dragged by an asset impairment loss of RM347 million.

Revenue for the quarter climbed 2.4% year-on-year to RM529.83 million from RM517.55 million, thanks to higher average selling prices from currency movements. No dividend was declared for the quarter under review.

Hartalega chief executive officer Kuan Mun Leong said he is confident in the sector's recovery despite ongoing challenges.

"On this note, our strategic decision to decommission the Bestari Jaya facility was the right move and has already borne fruit, positively impacting our bottom line," Kuan said.

Looking ahead, Kuan stated that Hartalega will continue executing its five-year plan to strengthen business sustainability and resilience, focusing on cost optimisation and automation.

"Although external market pressures will continue in the near term, glove demand will gradually normalise to pre-pandemic levels and expand further, driven by increasing healthcare needs and hygiene awareness globally," he added.

For the full year (FY2024), Hartalega recorded a net profit of RM12.72 million, compared to a net loss of RM235.14 million in FY2023.

However, revenue was down 24% to RM1.8 billion from RM2.4 billion in FY2023, due to sharply lower sales volumes and a decrease in average selling prices amid soft market demand.

Shares in Hartalega settled six sen or 1.64% lower at RM3.59 on Tuesday, valuing it at RM12.3 billion. Year to date, the counter has climbed by 33%.