RUBBER group Sri Trang Agro-Industry swung to a net loss of 422 million baht (S$15.8 million) for its fourth quarter ended Dec 31, 2023, from a net profit of 987.8 million baht a year ago.
This is due to a non-recurring item and an impairment loss of a subsidiary, reported the mainboard-listed company in a bourse filing on Friday (Feb 16).
Revenue for the period decreased 14.3 per cent to 21.7 billion baht, from 25.3 billion baht in the corresponding year-ago period.
This brings the group’s loss for the full financial year to 434.4 million baht, which is a reversal from a net profit of 4.8 billion baht a year earlier.
This is because its natural rubber business had borne the brunt of El Nino while its glove business continued to face an oversupply that put pressure on its profit margin, said the group.
Total revenue in FY2023 fell 23.9 per cent to 84.2 billion baht, from 110.7 billion baht in the corresponding year-ago period due to the lower average selling price (ASP) of the group’s natural rubber and gloves.
Its natural rubber segment – comprising technically specified rubber, ribbed smoked sheet and concentrated latex – recorded a drop in revenue of 25.8 per cent from a year ago to 65 billion baht.
This is due to a fall in ASP of 18.5 per cent that resulted from a slowdown in demand amid high inventory levels and declining sales volume. El Nino had led to greater difficulty in sourcing for raw materials, noted the group.
It added that the natural rubber industry had shown some signs of recovery in the fourth quarter as the level of inventory of non-China tire producers returned to normal levels. Supply of natural rubber in Thailand also entered the peak harvest season late last year.
Demand for natural rubber in the fourth quarter remained subdued, but had shown signs of recovery, with demand from its producers in the US and Europe picking up in late-2023.
Loss per share stood at 0.28 baht, compared to earnings per share of 3.12 baht a year prior.
A dividend of one baht per share was proposed for the year. If approved by shareholders at the upcoming annual general meeting, the dividend will be paid on May 8.
Shares of the company dipped S$0.02 or 3.2 per cent to close at S$0.61 on Friday, before the announcement.
