Rubber glove maker Kossan Rubber Industries Bhd (KL:KOSSAN) posted a 28.5% rise in net profit for the third quarter ended Sept 30, 2025 (3QFY2025), despite lower sales volume, thanks to higher prices.
Net profit rose to RM37.83 million in 3QFY2025 from RM29.44 million a year earlier, while revenue dropped 13.5% to RM438.98 million from RM507.39 million, according to a bourse filing on Thursday.
Stronger margins from higher rubber glove average selling price and lower production cost, made up for lower sales volume.
The group declared an interim dividend of two sen per share for the quarter, to be paid on Dec 24.
For the nine months ended Sept 30, 2025 (9MFY2025), net profit increased 13.3% to RM104.64 million from RM92.33 million, while revenue slipped 5.8% to RM1.31 billion from RM1.39 billion.
Kossan sees global glove demand showing early signs of stabilisation, supported by steady restocking activities and a gradual return to normalised consumption levels.
Though the recovery trajectory remains moderate, the group views the development as a positive signal supporting the industry’s long-term prospects.
However, potential headwinds remain. Kossan noted that uncertainties surrounding US tariff policies and sustained competitive pressure, particularly from Chinese manufacturers, may continue to influence pricing dynamics and short-term customer sentiment.
At noon break on Thursday, shares in Kossan stood unchanged at RM1.09, valuing the group at RM2.76 billion.
Source: theedgemalaysia