Kossan net profit up 29.6% in 4th quarter

PETALING JAYA: Kossan Rubber Industries Bhd’s net profit for the fourth quarter (Q4) ended Dec 31, 2018 grew 29.64% to RM59.51 million from RM45.91 million a year ago attributable to improvements in all three divisions of gloves, technical rubber products (TRPs) and cleanroom.

The group recorded revenue of RM589.37 million, an increase of 23.36% as compared with RM477.77 million in Q4’17.

For the full-year period, Kossan’s net profit rose 10.28% to RM200.78 million from RM182.06 million a year ago.

The group also recorded its highest ever revenue, surpassing the RM2 billion mark to RM2.14 billion, an increase of 9.53% against RM1.96 billion in FY2017.

On its prospects, Kossan said the demand for the group’s glove products continues to be strong. Capacity for the group’s latest Plant 17 (1.5 billion pieces) has been fully taken up, with meaningful contributions expected in the coming quarter.

Construction works for Plant 18 (2.5 billion pieces) and Plant 19 (3 billion pieces) are currently on-track, with expected full commissioning by the second quarter of 2019 and fourth quarter of 2019 respectively.

Thereafter, the next phase of the group’s expansion will be centred in Bidor, Perak, which is currently in the planning stage. The project will commence in 2020 and will take eight years to complete.

Additionally, Kossan said landbank in Bestari Jaya and Kuala Langat provides added flexibility and sustainability to the group’s .

Source: The Sun Daily

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