Malaysia's Top Glove Corp yesterday posted a 48 per cent drop in its fourth-quarter earnings as the steady roll-out of Covid-19 vaccines worldwide dampened the demand for gloves.

The world's largest medical glovemaker recorded a net profit of RM607.9 million (S$196.7 million) during the June-August period, compared with RM1.17 billion a year ago.

Revenue slumped 32 per cent to RM2.11 billion, a stock exchange filing showed.

"(The quarterly) results were softer on the back of normalising demand following mass vaccine roll-out, leading to lower sales volume and (prices), which were not matched by a corresponding reduction in raw material prices," the company said in a statement.

A previous ban on imports to the United States also continued to hurt sales during the period. But the year-long ban, imposed on Top Glove for alleged forced labour abuses, was lifted last week.

Top Glove had taken a hit to its reputation from the ban, which came at a time when it was making record profits as the pandemic boosted demand for its gloves.

The company also said yesterday that the ban's removal is expected to boost sales from its Malaysia operations to the United States, which accounts for 15 per cent of the group's total sales, but it sees a challenging and competitive business environment.

Sales to the US are expected to be fully normalised by December and shipments could commence as early as the end of this month, said the dual-listed company.

Top Glove's Singapore-listed shares closed at 99.5 cents yesterday, down 7.5 cents, or 7 per cent.

REUTERS