Kossan Q3 net profit up 28.5pct despite lower revenue

KUALA LUMPUR: Kossan Rubber Industries Bhd's net profit rose 28.5 per cent to RM37.83 million in the third quarter (Q3) ended Sept 30, 2025, from RM29.44 million a year ago.

However, its revenue fell 13.5 per cent to RM438.98 million for the quarter compared to RM507.39 million in the same period last year due to lower deliveries.

For the quarter, Kossan said in a stock exchange filing that the company recorded a decrease in revenue for all divisions with a total of RM439.0 million, a decrease of 13.48 per cent as compared with RM507.4 million in Q3 2024.

"Profit before taxation (PBT) for Q3 2025 was RM45.0 million as compared with RM39.7 million in Q3 2024," it said.

For the nine-month period, Kossan registered a higher net profit of RM104.64 million compared to RM92.33 million last year, while its revenue fell RM1.31 billion from RM1.39 billion previously.

On prospect, Kossan said the uncertainties surrounding US tariff policies and sustained competitive pressures, particularly from Chinese manufacturers, may continue to influence pricing dynamics and short-term customer sentiment.

The company said it remains committed to strengthening its disciplined approach in managing capacity, operational efficiency and ensuring product quality differentiation to preserve competitiveness.

"With a resilient balance sheet and agile production capabilities, the company believes it is well-positioned to navigate prevailing market uncertainties while remaining responsive to capturing opportunities arising from the gradual global recovery," it said.

In addition, Kossan said the technical rubber products (TRP) division is expected to sustain its satisfactory performance in the coming quarter.

"As market expansion continues at a measured pace, the company will remain vigilant in tracking industry developments and will leverage the division's operational agility to reinforce business stability, improve efficiency, and ensure the effective execution of key projects.

"For the cleanroom division, the company expects a stable performance and remains confident of delivering satisfactory results for FY25," it added.

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