Rubber glove manufacturer Top Glove's net profit for the third quarter to May 31 tumbled 36.5 per cent to RM74.7 million (S$24.5 million) from RM117.6 million for the year-ago period. It attributed the drop to a 22 per cent increase in natural rubber latex prices from the preceding quarter, as well as intense competition.
Earnings per share was 2.92 sen compared with 4.64 sen.
The Malaysia-based company declared an interim dividend of 3.5 sen per share versus seven sen per share a year ago. The dividend is payable on July 16.
Revenue for the quarter was up 8.1 per cent to RM1.19 billion from RM1.1 billion, due to a 9 per cent rise in sales volume versus the year-ago period. Finance costs rose to RM20.02 million from RM12.67 million for the same period last year.
To offset the increase in rubber latex prices, Top Glove has increased its average selling prices. The impact of the revision will be reflected only in the fourth quarter, it said.
Top Glove closed 3.7 per cent lower at $1.56 yesterday.
Catalist-listed TrickleStar opened at 26.5 cents on its trading debut yesterday, up 1.9 per cent from its initial public offering (IPO) price of 26 cents. The counter closed at 34 cents yesterday.
With a market capitalisation of about $21.3 million, TrickleStar's listing brings the total companies listed on the Catalist board to 218, with a combined market capitalisation of about $10 billion.
The IPO, which does not have a public tranche, planned to raise net proceeds of $2.4 million through the placement of 15 million new shares.
Out of the proceeds, $400,000 will be used to scale and establish new sales channels. Some $1 million has been earmarked for product development and acquisitions. Another $1 million is for general working capital.
Listing expenses are expected to cost $1.5 million.
TrickleStar executive chairman and chief executive Bernard Emby said the IPO will enable the firm to access capital for its next growth phases, as it looks to increase market share, develop new markets and products, and deliver value to shareholders.
The company designs and supplies energy-saving products, such as advanced power strips, load controllers, energy meters, energy monitors and surge protectors.