ONE GLOVE GROUP BERHAD: Navigating the Headwinds with Improved Q4 FY2025 Results

The Malaysian glove manufacturing sector continues to be a focal point for investors, a segment known for its dynamic shifts and resilience. Today, we delve into the latest financial performance of ONE GLOVE GROUP BERHAD, as revealed in their unaudited interim financial report for the fourth quarter ended 31 March 2025. This report provides a crucial snapshot of the company’s efforts to navigate a challenging market, showcasing significant improvements in revenue and a notable reduction in losses, even as industry-wide pressures persist.

Core Data Highlights: A Glimpse into Performance

Let’s break down the numbers to understand ONE GLOVE GROUP BERHAD’s trajectory. The company has shown a strong rebound in its top-line performance, coupled with a significant narrowing of its losses.

Quarterly Performance (Q4 FY2025 vs. Q4 FY2024)

The fourth quarter has been particularly strong, demonstrating a significant uplift from the previous year. This improvement was primarily driven by better average selling prices (ASP) – which refers to the average price at which a product is sold – and higher sales volumes.

This translates to a staggering 207.57% increase in revenue and a 57.12% reduction in loss before tax compared to the corresponding quarter last year. A clear sign of recovery!

Year-to-Date Performance (FY2025 vs. FY2024)

Looking at the full financial year, the trend of improvement continues. The company’s revenue for the period saw a healthy increase, and its overall loss was significantly reduced.

For the full financial year, revenue grew by 9.73%, and the loss before tax was trimmed by 32.62%. This was largely due to improved ASP, enhanced production efficiency (including better utilities consumption), and a reduction in administrative expenses.

Quarter-on-Quarter Comparison (Q4 FY2025 vs. Q3 FY2025)

Comparing the latest quarter against the immediate preceding quarter also paints a positive picture, indicating continued operational momentum.

Revenue jumped by 63.30% and loss before tax reduced by 25.86% compared to the preceding quarter. This robust sequential growth underscores the positive impact of improved ASP and higher sales volume.

Earnings Per Share (EPS)

The company’s basic and diluted loss per share have also seen significant improvement, reflecting the reduced overall losses. A lower negative EPS indicates a smaller loss attributable to each share.

Financial Health Snapshot (Balance Sheet)

As at 31 March 2025, the company’s financial position shows:

• Total Assets: RM397,157,000 (down from RM403,722,000 as at 31 March 2024)
• Total Equity: RM123,111,000 (up from RM108,483,000 as at 31 March 2024)
• Total Liabilities: RM274,046,000 (down from RM295,239,000 as at 31 March 2024)
• Net Assets Per Ordinary Share: RM0.22 (up from RM0.21 as at 31 March 2024)

The increase in total equity and net assets per share, alongside a reduction in total liabilities, points towards an improving financial structure, partly aided by the issuance and conversion of redeemable convertible preference shares.

Navigating the Future: Risks and Prospects

Despite the improved financial figures, ONE GLOVE GROUP BERHAD acknowledges that the operating environment remains challenging. The global glove industry is still grappling with an oversupply situation, which continues to exert pressure on average selling prices (ASPs) and intensifies market competition. Furthermore, the ongoing trade tensions between the USA and China introduce uncertainty, affecting the timing and consistency of customer orders as buyers await regulatory clarity.

However, the company is not standing still. It has outlined clear strategies to bolster its competitiveness and ensure long-term sustainability:

• Operational Excellence: A strong focus on quality, regulatory compliance, and enhancing operational efficiency.
• Cost Optimisation: Prioritising automation and process optimisation to reduce manufacturing costs.
• Market Diversification: Intensifying sales and marketing efforts to broaden its customer base and improve order visibility.
• ESG Commitment: Actively enhancing its Environmental, Social, and Governance (ESG) practices, evidenced by an “A” rating in the Amfori BSCI audit for social compliance. This is increasingly vital for attracting global customers and investors.

The management believes that these strategic initiatives, combined with a commitment to reliability and regulatory adherence, position the Group well to capitalise on any future recovery in demand and to serve discerning markets.