Its net loss widened in the second quarter ended Dec 31, 2025 (Q2 FY2026) to RM58.44 million from RM4.92 million a year ago. Quarterly revenue fell 5.71% to RM187.44 million from RM198.79 million previously.
For the six months ended Dec 31, 2025, its net loss widened to RM193.05 million from RM69.55 million a year earlier while revenue dropped 7.19% to RM393 million from RM423.44 million.
Supermax, which has been in the red since Q2 FY2023, did not declare any dividend for the quarter.
In its exchange filing yesterday, Supermax said it incurred RM9.12 million in unrealised foreign exchange losses following the depreciation of the US dollar against the ringgit while operating expenses rose as its US plant ramped up operations.
The ringgit, which rose about 10% against the dollar last year, is pressuring Supermax’s export receipts which are mainly quoted in the greenback. The weak dollar effectively reduces export sales value despite higher average selling prices.
The company also said rising minimum wages, electricity tariffs and raw material costs continued to pressure margins while intense competition from China posed further challenges.
Supermax is the only Malaysian glove maker to have set up a manufacturing plant in the US.
The facility in Houston, Texas, will be built over four phases and have an annual production capacity of 19.2 billion pieces of gloves when fully completed. The current phase one entails capital expenditure of US$350 million (RM1.36 billion).
Share price weakens
The group’s first half net loss has exceeded the consensus’ full-year estimates of research houses, further weakening its already battered share price.
It fell 5.1% or 1.5 sen to close at its intraday low of 28 sen, valuing the group at RM899 million. The shares have fallen 17.7% so far this year, adding to the 70% plunge last year.
TA Securities said Supermax will be making losses for at least another two fiscal years, mainly because its US operations carry structurally higher operating costs. The cost of production in the US is at least two times higher than in Malaysia, it said in a note today.
CIMB Securities said the company is facing difficulty in passing on cost to its customers amid a weakening greenback at a time when the industry is seeing huge inventory surplus following the commissioning of Chinese manufacturers’ new overseas plants.
The industry is facing a massive supply glut as Chinese rivals set up facilities and ramp up production in other Southeast Asian countries to circumvent stiff US tariffs. In addition, Malaysian glove makers are also under pressure as Chinese-made gloves flood non-American markets.
Nevertheless, Supermax is confident its decision to set up a manufacturing plant in the US will pay huge dividends when it increases US sales as production ramps up.
“Production in the US plant has started since last quarter and Supermax is securing contracts with US customers in order to boost sales.
“Supermax benefits from the severe US tariffs on Chinese gloves, directly serving US buyers who are seeking non-China supply. This promises to be a direct competitive advantage as its gloves are exempt from all US import tariffs,” the company said in a statement.
Supermax was founded by its executive chairman Stanley Thai and his wife Cheryl Tan in 1987. The group produces over 23 billion gloves a year and exports to more than 165 countries.