Top Glove Corporation Bhd. · MYX:TOPGLOV
Top Glove Corporation Bhd — Q3 FY2024 Earnings Presentation
17 slides from Top Glove Corporation Bhd's earnings presentation, Jun 19, 2024
Slide 1: Results Briefing 3rd Quarter Financial Year 2024
1/17 TOP GLOVE CORPORATION BHD Results Briefing 3rd Quarter Financial Year 2024 ended 31st May 2024 Date : 19th June 2024, Wednesday Time : 3:15pm to 4:15pm RESILIENCE REAPS RESULTS Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR United States : TGLVY
Slide 2: Key Highlights for 3QFY24
2/17 Key Highlights for 3QFY24 Solid Improvements in Performance Driven By Resilience 1 2 3 4 Strong Growth in Sales Improvement in Stronger Sustainability Volume with Continual Profit Margin Cash Balance Milestones Uptrend Expected • Stemming from higher • Higher cash contributions • Commendable sc
Slide 3: Agenda
3/17 1 Financial Performance AGENDA 2 Sustainable Business: Moving Beyond Business As Usual 3 Outlook
Slide 4: 3QFY24 Financial Highlights
4/17 3QFY24 Financial Highlights Resilience Drives Results : Significantly Improved 3QFY24 Performance 3QFY24 2QFY24 QoQ Highlights of 3QFY24 vs 2QFY24 RM ‘mil 1. Sales volume up by 13%. Some shipments delayed to 4QFY24 due to port congestion, otherwise sales volume would be up by 18%. Revenue 637 5
Slide 5: 9MFY24 Financial Highlights
5/17 9MFY24 Financial Highlights Stronger EBITDA and Narrowing Losses from Operations 9MFY24 9MFY23 QoQ Highlights of 9MFY24 RM ‘mil Revenue 1,681 1,781 -6% 1. Sales volume flattish but lower revenue due to different glove product mix. EBITDA 180 (175) +203% Net Loss (26) (433) +94% 2. Profitability
Slide 6: Resilient Recovery: A Good Improvement Quarter After Quarter
6/17 Resilient Recovery : A Good Improvement Quarter After Quarter Revenue, RM ‘mil Sales Volume, RM ‘mil 4QFY23 46% 3QFY24 637 531 550 476 493 1. Revenue and Sales Volume were at the lowest in 4QFY23, along with Sales Volume which increased by 46% compared to 3QFY24. 3QFY23 4QFY23 1QFY24 2QFY24 3QF
Slide 7: Perseverance Prevails: Core EBITDA Margin on Recovery Trend
7/17 Perseverance Prevails : Core EBITDA Margin on Recovery Trend Towards Pre Pandemic Level Core EBITDA RM ‘mil & Margin % 15% 704 8% 4% 5% 52 20 25 (10) (26) -2% (55) (64) -5% Pre Pandemic -9% -10% FY19 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Core EBITDA improved due to: a. Higher utilisation rate from
Slide 8: Nitrile & NR Latex Glove Performance: Positive Contribution
8/17 Nitrile & NR Latex Glove Performance : Positive Contribution Nitrile Gloves 3QFY24 vs 2QFY24 Sales Volume, Nitrile Glove performance: bil pcs +25% • Sales Volume up by 25%. ASPs, • Higher utilisation and better control of production USD/carton -1% quality and cost, offset the increase in raw ma
Slide 9: 9MFY24 Product Mix and Sales Volume by Region
9/17 9MFY24 Product Mix and Sales Volume by Region Sales to North America & Eastern Europe Surge while Western Europe Sales Soften 9MFY24 % of Product Mix by North America : 15% Western Europe : 18% Eastern Europe : 17% Sales Volume 9MFY24 vs 9MFY23: 20% 9MFY24 vs 9MFY23: -32% 9MFY24 vs 9MFY23: 38%
Slide 10: Strong Glove Demand Enable the Cost Pass Through Mechanism
10/17 Strong Glove Demand Enable the Cost Pass Through Mechanism Nitrile & NR Latex Concentrate Prices 3QFY24 Production Cost Structure USD/kg Nitrile 2.42 Depreciation 5% 2.1 2.04 Electricity 5% 1.66 1.63 1.52 1.6 NR Latex Packaging 7% Raw Material 1.06 1.22 1.24 1.16 Other Overhead 41% 0.94 1.1 7%
Slide 11: Prioritising Cash Preservation During Recovery Phase
11/17 Prioritising Cash Preservation During Recovery Phase A Stronger Cash Position from Operations and Sale of Excess Land Operating Cash Flow, RM’mil Total Cash, RM’mil Net Cash Position, RM’mil +2% 959 935 +27% 516 +2,840% 35 405 (1) 2QFY24 3QFY24 29/02/24 31/05/24 29/02/24 31/05/24 Improvement i
Slide 12: Agenda: Sustainable Business
12/17 1 Financial Performance AGENDA 2 Sustainable Business: Moving Beyond Business As Usual 3 Outlook
Slide 13: Recognition of ESG Achievements
13/17 Recognition of ESG Achievements 1 Sustainalytics 2 ISS ESG Corporate Rating Inclusion since 2024 Inclusion since 2023 March 2024 May 2024 1. Top scorer in Global Healthcare 1. Top 30% of the Global Healthcare Industry and Medical Supplies Equipment & Supplies Industry [2024: 52.32 out of 100]
Slide 14: Demonstrating Excellence in Sustainability
14/17 Demonstrating Excellence in Sustainability Top Glove ESG Risk Rating Comparing with Industry Peers About Sustainalytics Healthcare Global Companies Industry Universe ⬧ Sustainalytics, a Morningstar Company, is a leading (out of 643) (out of 16,215) independent ESG and corporate governance rese
Slide 15: Agenda: Outlook
15/17 1 Financial Performance AGENDA 2 Sustainable Business: Moving Beyond Business As Usual 3 Outlook
Slide 16: Outlook: The Tide Has Turned; Stronger Quarters Ahead
16/17 Outlook: The Tide Has Turned; Stronger Quarters Ahead 1. Strong glove demand will continue: • Stock replenishment. • Higher cases of Chinese glove manufacturers being added into FDA’s import alert list. Demand 13 out of 14 cases since Jan 2024 were glove manufacturers from China. • U.S.A custo
Slide 17: Thank You Have A Nice Day!
17/17 Scan or click to access TG Investor Relations webpage Scan or click to access TG Sustainability webpage Thank You Have A Nice Day! www.topglove.com/ir-overview-en invest@topglove.com.my +603 3362 3098 www.topglove.com/sustainability