Kossan expects global demand for gloves to remain challenging

PETALING JAYA: Kossan Rubber Industries Bhd expects global demand for gloves to remain challenging in 2025, driven by ongoing uncertainties under the current US administration.

“However, the imposition of higher US tariffs on Chinese-made medical gloves is expected to drive demand towards manufacturers outside China.

“As the world’s largest producer of medical gloves, Malaysia is well-positioned to benefit from this shift,” the company said in a Bursa Malaysia filing.

Kossan’s net profit for its fourth quarter ended Dec 31, 2024 (4Q24) surged to RM27.70mil from RM806,000 in the previous corresponding period, while revenue in the fourth quarter rose to RM517.9mil from RM400.15mil a year earlier.

The company said its gloves division’s revenue increased by 6.9% to RM440.2mil in 4Q24 from RM 411.8mil in 3Q24 due to higher sales volume.

“Pre-tax profit of RM25.5mil was recorded in 4Q24 as compared with a pre-tax profit of RM 30mil in 3Q24, mainly due to the impact from the strengthening of the ringgit against the dollar in the 4Q24 compared with 3Q24.”

For the financial year ended Dec 31, 2024, Kossan’s net profit jumped to RM120.03mil from RM13.34mil in the previous corresponding period, while revenue rose to RM1.91bil from RM1.59bil a year earlier.