Kossan Rubber Industries (KLSE) Q2 2025 earnings summary

Executive summary

• Net profit for 2QFY2025 was RM31.2 million, nearly unchanged from RM31.3 million a year earlier.

• Revenue declined 11% year-over-year to RM382.2 million, mainly due to a 10-day production halt after a gas pipeline explosion.

• Higher average selling prices and lower production costs in gloves and cleanroom divisions helped cushion the impact.

Financial highlights

• 2QFY2025 net profit: RM31.2 million; 2QFY2024: RM31.3 million.

• 2QFY2025 revenue: RM382.2 million, down from RM430 million year-over-year.

• 1HFY2025 net profit: RM66.8 million, up 6.2% from RM62.9 million year-over-year.

• 1HFY2025 revenue: RM869.5 million, down 1.4% from RM881.5 million year-over-year.

• No dividend declared for the quarter.

Outlook and guidance

• Technical rubber products division expected to sustain growth in 2H 2025.

• Cleanroom division projected to deliver stable performance.

• Focus remains on enhancing product quality and optimising costs amid US tariffs and Chinese competition.

• Strong balance sheet and agile production model position the group for sustainable growth.