Kuala lumpur: Top Glove Corporation Bhd anticipates stronger earnings for the financial year ending August 31, 2026 (FY2026), fueled by continued global glove demand and elevated average selling prices (ASPs).
According to BERNAMA News Agency, Executive Chairman Tan Sri Dr Lim Wee Chai highlighted the global glove market's consistent annual growth of approximately 10 percent, coupled with certain supply constraints that have bolstered selling prices. "Demand is growing every year by about 10 percent, so demand is good. When demand is more than supply, prices go up. Now, some factories may be affected, so supply is a little affected or short, while demand is still strong," he remarked.
Dr Lim shared these insights following the launch of 'Stuck in the Middle,' a book by University of Cyberjaya Pro Chancellor Tan Sri Dr R. Palan. He emphasized that the improved balance between demand and supply is projected to enhance the performance of the world's largest glove manufacturer compared to the previous financial year.
"The profit will be much better than one year ago. The outlook is good. We are going to announce the August 2026 results next month, on Oct 6. It will be a better quarter and a better year compared with the previous years," Dr Lim stated. He pointed out that the uptick in demand and ASPs are pivotal factors underpinning the positive outlook.
Dr Lim also noted that geopolitical tensions or pandemics could drive customers to increase orders as a precaution, further boosting glove demand and prices. "Normally, when there is a war or pandemic, customers or consumers sometimes have some slight panic, so they buy a little bit more and order a little bit more. When glove prices increase, it is good for the whole industry and the whole supply chain, so profitability will be better," he explained.
Addressing the impact of rising crude oil prices, Dr Lim mentioned that higher oil prices would escalate costs for petroleum-based raw materials used in glove production, including nitrile-related inputs. "When crude oil prices increase, raw material prices increase, and glove selling prices will also increase. When crude oil prices come down, the manufacturing cost of raw materials also comes down," he said. Despite external cost fluctuations, Dr Lim emphasized the importance of maintaining operational efficiency for the group.
"More importantly, internally we must be very quality and cost-efficient," he added. In its third quarter ended May 31, 2026 (3Q), Top Glove reported a significant jump in net profit to RM80.98 million, compared to RM34.74 million recorded in the previous corresponding quarter, with revenue rising to RM1.09 billion from RM830.25 million previously.