[%Ysrs%] 1QFY25 
Hartalega reported a significant improvement in its 1QFY25 financial performance, with core PATMI reaching RM44.6 million, a stark contrast to the RM11.9 million loss recorded in 1QFY24. This result was 21% within internal expectations and 23% above consensus forecasts.

Looking ahead, Hartalega is expected to deliver relatively flat performance in 2QFY25, partly due to potential impacts from currency fluctuations between the ringgit and the US dollar. However, stronger earnings are anticipated in the subsequent quarters, fueled by ongoing inventory replenishment, possible trade diversion from the US to Malaysia due to regulatory changes, a lower cost base following the decommissioning of the Bestari Jaya plant, and the commissioning of new production lines at the NGC1.5 facility.

The global glove market is forecasted to reach equilibrium by 2025, with Hartalega targeting an increase in production to 2.2 billion pieces per month in 2QFY25. To manage rising input costs, particularly NBR prices, the company plans to marginally increase ASP. However, the strengthening of the ringgit against the US dollar may pressure profit margins.

$KLSE-HARTA 1QFY25 
Hartalega reported a significant improvement in its 1QFY25 financial performance, with core PATMI reaching RM44.6 million, a stark contrast to the RM11.9 million loss recorded in 1QFY24. This result was 21% within internal expectations and 23% above consensus forecasts.

Looking ahead, Hartalega is expected to deliver relatively flat performance in 2QFY25, partly due to potential impacts from currency fluctuations between the ringgit and the US dollar. However, stronger earnings are anticipated in the subsequent quarters, fueled by ongoing inventory replenishment, possible trade diversion from the US to Malaysia due to regulatory changes, a lower cost base following the decommissioning of the Bestari Jaya plant, and the commissioning of new production lines at the NGC1.5 facility.

The global glove market is forecasted to reach equilibrium by 2025, with Hartalega targeting an increase in production to 2.2 billion pieces per month in 2QFY25. To manage rising input costs, particularly NBR prices, the company plans to marginally increase ASP. However, the strengthening of the ringgit against the US dollar may pressure profit margins.

$HARTA / 5168 (HARTALEGA HOLDINGS BERHAD)