With the passing of concerns over the Covid-19 outbreak, the rubber glove manufacturing industry continues to suffer from lost demand.
Kossan Rubber Industries Bhd is one of them that saw a sharp decline in its profits last year.
Kossan's net profit for the financial year ending 31 December 2022, fell 94.5% to RM156.62 million from RM2.86 billion in the previous financial year.
Revenue also declined 65.1% to RM2.32 billion from RM6.63 billion previously due to lower revenue from the glove and clean room divisions.
Even so, the income of the technical rubber product division recorded a 16% increase from RM169.89 million to RM197.01 million.
Meanwhile, in the fourth quarter, Kossan recorded a net loss of RM2.49 million compared to a net profit of RM218.67 million in the previous quarter.
Fourth quarter revenue declined 47.9% to RM481.45 million from RM924.56 million previously due to a decline in revenue from all divisions.
Commenting on this weakness, the rubber glove maker said the industry continues to be affected by oversupply.
At the time of writing, Kossan shares were trading down 1.7% to RM1.11 ahead of the close of trading on Friday.
