RUBBER group Sri Trang Agro-Industry swung to a net profit of 854.3 million baht (S$34 million) for its fourth quarter ended December, from a net loss of 422 million baht in the previous corresponding period.
The improvement in bottom line came amid higher contributions from the group’s natural rubber and gloves business segments, said Sri Trang Agro-Industry in a bourse filing on Monday (Feb 17).
Revenue for the period increased 53.2 per cent to 33.3 million baht, from 21.7 million baht in the year-ago period.
This brings the group’s full-year net profit to 1.7 billion baht, which is a reversal from a net loss of 434.4 million baht.
This translates to an earnings per share of 1.09 baht, compared to a loss per share of 0.28 baht in the previous year.
Its board of directors has approved a dividend of one baht per share for the year. If approved by shareholders at the upcoming annual general meeting, the dividend will be paid on May 8.
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Revenue for the period increased 53.2 per cent to S$33.3 million baht, from 21.7 million baht in the year-ago period.
Total revenue in FY2024 rose 35.8 per cent to 114.4 billion baht, from 84.2 billion baht in the previous corresponding period due to higher contributions from the natural rubber and gloves segments.
Its natural rubber segment – comprising technically specified rubber, ribbed smoked sheet and concentrated latex – recorded an increase in revenue of 37.6 per cent from a year ago to 89.5 billion baht.
This was driven by the 26.3 per cent increase in average selling price and the 8.3 per cent growth in sales volume as demand picked up.
“Natural rubber supply in FY2024 was also normal, unlike in FY2023 when El Nino caused a reduction of supply that led to difficulties in raw material sourcing and increased costs,” said the group.
By geography, China accounted for the largest portion of natural rubber sales volume at 56.6 per cent. This was followed by Thailand and other countries in Asia at 14.7 per cent and 12.9 per cent, respectively.
Sri Trang Agro’s gloves segment, meanwhile, recorded 24.8 billion baht in FY2024 revenue, up 30.2 per cent on the year. Sales volume reached a record 38.5 billion pieces, growing 22.8 per cent on the year.
“The growth was driven by a pickup in global demand as inventories of major distributors and customers in many countries reverted to normal levels,” said the group.
It added that the US levy of tariffs on gloves produced in China also helped boost the company’s competitiveness in the US market. The group also noted that it benefited from the anti-dumping measures of Brazil.
Shares of Sri Trang Agro-Industry ended Monday flat at S$0.625, before the announcement.
