Shares of glove manufacturer Hartalega Holdings Bhd fell in the trading session on Wednesday after being shown a dismal earnings report.
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.
In addition, revenue in the quarter under review also contracted by 47.97% year-on-year to RM440.04 million from RM845.67 million.
It follows lower sales volume and average selling price (ASP), pressured by oversupply and inventory adjustments in the supply chain.
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.
Looking ahead, the company expects the glove industry to remain challenging for some time as the global glove market remains oversupplied.
Hartalega traded down 2.3% at around RM2.09 at the time of writing.
