KUALA LUMPUR: Top Glove Corp Bhd will continue to pursue merger and acquisition (M&A) opportunities that synergised with its current business, both in similar or related industries, said Executive Chairman, Tan Sri Dr Lim Wee Chai.
He said the construction of a new facility, Factory 30 (Klang), was progressing and production was expected to commence by April 2017.
By then, he said, the company would have a total of 540 production lines and a production capacity of 52.4 billion pieces of gloves per annum.
“With a view to expanding production capacity, the group also recently acquired a factory in Klang (Factory 31) and it is estimated to be able to produce six billion pieces of gloves per annum, with Phase 1 targeted to be operational by mid-2017,” he said in a statement yesterday.
Lim said Top Glove expected a competitive business landscape ahead, with the likelihood of oversupply and eventually, industry consolidation taking place.
“However, the group is confident of overcoming any challenges that may arise by enhancing its cost management and optimising the efficiency of its production lines,” he said.
He said the group did well for the FY2016 amid a challenging business environment with substantial cost increases and intense competition.
For financial year ended Aug 31, 2016 (FY2016), Top Glove’s pre-tax profit rose by 21.8 per cent to RM442.63 million from RM363.54 million a year ago.
Revenue improved by 15.1 per cent to RM2.9 billion versus RM2.5 billion previously, mainly due to several improvement initiatives, proven instrumental in enhancing quality and cost efficiently.
The board of directors has also proposed a final dividend of 8.5 sen, bringing the total FY2016 dividend payout to 14.5 sen, subject to shareholders’ approval at the upcoming annual general meeting in January 2017. — Bernama