SRI Trang Agro-Industry has posted a net profit of 628.4 million baht (S$23.6 million) for the three months ended Jun 30, 2024, up 471.3 per cent from 110 million baht in the corresponding period a year ago.
On Wednesday (Aug 14), the mainboard-listed company said that second-quarter revenue rose 21.6 per cent to 25.8 billion baht, from 21.2 billion baht in the second quarter of the previous fiscal year.
Earnings per share rose to 0.0041 baht, from 0.0007 baht in Q2 FY2023. Meanwhile, earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 77.1 per cent to 2.2 billion baht in Q2 FY2024, from 1.2 billion baht.
In the second quarter of this year, revenue from the company’s natural rubber segment accounted for 77.9 per cent of total revenue at 20.1 billion baht, marking a 22.6 per cent year-on-year increase. This was attributed to higher sale volume to non-Chinese producers.
Second-quarter revenue from its gloves segment increased 17.8 per cent year on year to 5.7 billion baht in H1 FY2024, driven by recovery in demand as sales volumes grew.
For the first half of the year, net profit fell 24.9 per cent to 298.7 million baht, from 397.9 million baht in the corresponding period a year ago. Revenue increased 8.4 per cent to 49.5 billion baht, from 45.7 billion baht in the first half of the previous fiscal year.
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This comes after the company recorded higher first-half finance costs this year, compared to the year-ago period.
The company said the natural rubber industry continued its recovery in the second quarter of this year, following a rise in demand from non-Chinese tyre producers.
It noted that heavy rainfall, forecasted from September to November this year, increases the likelihood of diseases for rubber trees and reduces the number of rubber tapping days. This could decrease the supply of natural rubber.
Natural rubber supply could be weakened further if high durian prices compel rubber farmers in the east and south of Thailand to switch production to durian instead, Sri Trang said.
While overall second-quarter demand for natural rubber has improved, demand from Chinese tyre produces have remained sluggish even as inventory levels in the country have fallen.
Heavy rainfall and the European Union’s deforestation regulation could affect natural rubber’s price volatility.
Shares of the company on Wednesday closed flat at S$0.73, before the announcement.
