Top Glove Expects ‘Headwinds’ as Speedy Vaccination Damps Prices

Bloomberg2021-09-20

Top Glove Corp., the world’s largest rubber glove producer, said it expects the business environment to remain challenging over the next few quarters as demand for protective gear moderates amid a ...

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More headwinds are likely to come our way.”\nThe Malaysian company on Friday reported a 48% on-year decline in its fourth-quarter profit as the speedy roll-out of Covid vaccines globally slowed demand for its products and the import ban by the U.S. reduced sales. Competition from players in China, Thailand and Vietnam added to the weakness in prices.\nLee said the company is well-placed to deal with the softening in prices, and the removal of the import ban earlier this month is expected to boost sales to the U.S., which accounts for 15% of the group sales. Shipments to the U.S. were banned since July last year pending an inquiry into Top Glove’s labor practices.\n“The U.S. is a very important market for us. The import ban has been lifted and the CBP has tested, audited and verified that our operations are free of forced labor. So U.S. consumers are very comfortable to buy from us again. 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