KUALA LUMPUR, March 16 (Xinhua) -- Top Glove, the world's largest glove maker based in Malaysia, slipped into the red in the second quarter of the 2023 financial year ending on Feb. 28, amid glove oversupply.
The company said in a statement on Thursday that it posted a net loss of 164.67 million ringgit in the quarter, as compared to a net profit of 87.55 million ringgit a year ago.
The group said its financial performance continued to be impacted by headwinds which have weighed heavily on the glove industry.
"Destocking activity persisted, driven by excess customer inventory, resulting in a softer order book. Aggravating the situation was the ongoing glove oversupply situation, combined with a lack of customer urgency to place orders in light of shorter delivery times from lower manufacturer utilization," said the group.
Meanwhile, rising production costs which the group was unable to share out with customers owing to moderating average selling prices (ASPs), also contributed to the muted financial results.
The group said the challenging and competitive business landscape is expected to endure through 2023. (1 ringgit equals 0.22 U.S. dollar)