The world’s largest glove maker, Top Glove, expects to expand US sales in the 2026 financial year, even as it faces intensifying competition from Chinese rivals setting up production in Southeast Asia to take advantage of lower American tariffs.
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“The glove business is challenging and competitive, especially on an international level,” Top Glove Executive Chairman Tan Sri Dr Lim Wee Chai said in the Malaysian company’s earnings statement on Thursday.
With an improved cost structure, Top Glove was “better prepared to take on competition from foreign players who will be operating from Asean countries, where a more level playing field is expected,” he added.
Top Glove returned to profit after losses in the two previous financial years, posting net income of 109 million ringgit (US$25.9 million) for the full year ended in August.
Stronger glove demand and cost management efforts helped to support earnings, the company said. Revenue for the year rose 39 per cent to 3.49 billion ringgit (US$828 million). Top Glove shares rose as much as 12 per cent on Thursday.
It is targeting US sales to account for 40 per cent of the company’s group volume sales over the next two years, up from 30 per cent now, according to a July report by Kenanga Investment Bank.