Hartalega Losses, Gloves Industry Continues to 'Shrink'

<p>&nbsp;Shares of glove manufacturer Hartalega Holdings Bhd fell in the trading session on Wednesday after being shown a dismal earnings report.</p><p><br /></p><p>Hartalega reported a net loss of RM52.47 million in the first quarter of fiscal year 2024 (ended 30 June) from a profit of RM88.28 million recorded in the same period a year ago.</p><p><br /></p><p>In addition, revenue in the quarter under review also contracted by 47.97% year-on-year to RM440.04 million from RM845.67 million.</p><p><br /></p><p>It follows lower sales volume and average selling price (ASP), pressured by oversupply and inventory adjustments in the supply chain.</p><p><br /></p><p><br /></p><p>In addition, it also recognized the provision for severance pay of RM47 million in the quarter following the cancellation of its Bestari Jaya facility, as one of the factors for the decline.</p><p><br /></p><p>Looking ahead, the company expects the glove industry to remain challenging for some time as the global glove market remains oversupplied.</p><p><br /></p><p>Hartalega traded down 2.3% at around RM2.09 at the time of writing.</p>