Kossan Rubber Industries (KLSE) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 rose 19.85% year-over-year to RM1.91 billion, with profit before tax up 357.5% to RM158.0 million, driven by higher glove sales and improved efficiencies.

• Fourth quarter revenue increased 29.4% year-over-year to RM517.9 million, with profit before tax surging to RM38.7 million from RM3.4 million.

• The Gloves division led growth, rebounding from a loss to RM104.1 million PBT for FY2024, while Technical Rubber Products (TRP) and Clean-Room divisions showed mixed results.

Financial highlights

• FY2024 net profit after tax was RM122.4 million, up from RM16.3 million in FY2023.

• Basic EPS for FY2024 was 4.70 sen, compared to 0.52 sen in FY2023.

• Cash and bank balances at year-end stood at RM974.1 million, down from RM1.27 billion a year earlier.

• Net assets per share decreased to 142.90 sen from 150.34 sen at end-2023.

• Total equity declined to RM3.68 billion from RM3.86 billion, mainly due to higher dividend payouts.

Outlook and guidance

• Global glove demand remains challenging for 2025, but higher US tariffs on Chinese gloves may benefit Malaysian producers.

• Domestic headwinds include rising labor costs and regulatory changes, but raw material prices are stable.

• The group is focused on automation, digitalization, and workforce training to enhance cost efficiency.

• TRP division expects slower infrastructure demand but stable automotive sector; Clean-Room division anticipates steady performance.

• Management remains cautiously optimistic for FY2025.