by Robert Yota
Publicly-listed latex glove molding producer PT Mark Dynamics Indonesia (MARK) posted a positive performance in the first quarter of 2020, mainly driven by a demand boost in medical latex gloves amid the ongoing COVID-19 pandemic. The company recorded net sales of Rp 96.81 billion, up 9.94% (YoY) from Rp 88.06 billion last year. Furthermore, MARK’s net profit grew slightly from Rp 23.04 billion in 1Q-2020 to Rp 23.32 billion in this year’s first quarter.
MARK president director Ridwan Goh stated that there had been a demand increase for medical glove moldings following the escalation of the coronavirus in 1Q-2020, albeit not at a significant level yet. According to him, many latex glove producers still have sufficient stock to fulfill the growing demand during the first quarter, which meant that requests for glove moldings have yet to increase rapidly. Furthermore, MARK’s biggest market for its exports, Malaysia, was implementing country-wide lockdown throughout 1Q-2020, which made it virtually impossible for MARK to export its latex glove moldings to the neighboring country.
Since then, Malaysia has loosened its lockdown, and the government has gradually allowed factories to start operating at a higher capacity since the start of April. In response, MARK is optimistic that it will maintain or even improve its sales figure by the end of this year’s second quarter.
“The demand for glove molding will be felt more in the second quarter as latex glove companies begin to increase its production capacity following the easing restrictions. However, it will take some time for them to regain momentum,” stated Ridwan in a press release.
Currently, MARK has a 35% market share on the sale of latex glove moldings globally. Malaysia proves to be a crucial market as 65% of MARK’s total sales originate from the nearby nation. The company operates its factory at the Medan Star industrial area in Deli Serdang, North Sumatra.