GLOVE manufacturer Sri Trang Gloves reported a net loss of 86.5 million baht (S$3.4 million) for the three months ended Sep 30, a 282.4 per cent drop from a profit of 47.4 million baht in the previous corresponding period.
The loss in earnings came even though revenue rose 36.6 per cent to 6.3 million baht over the same period, from 4.6 million baht the year before.
Loss per share stood at 0.03 baht, from earnings per share of 0.02 baht the year before, the company reported in a bourse filing on Friday (Nov 8).
The company noted that sales volume grew 26.3 per cent year-on-year to hit 9,593 million pieces across all products and regions.
Compared with the previous quarter, sales volume rose by 13.8 per cent from 8,429 million pieces. “The quarterly growth was partly derived from postponed shipments from the previous quarter due to the seaport congestion during the Red Sea crisis, which led to prolonged shipping times across many routes and rapidly rising freight rates, prompting some customers to delay shipments,” said the company.
Meanwhile, average selling prices for the third quarter was 654 baht per 1,000 pieces, an increase of 8.1 per cent compared with Q3 2023.
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The company added that it was able to raise selling prices of the gloves despite “stiff industry competition amid an ongoing oversupply, with the average selling price in US dollars increasing by 2.1 per cent quarter-on-quarter”.
For the nine months of the fiscal year, net profit was 438.6 million baht, more than double compared with the same period last year of 195 million baht.
Revenue grew 31.1 per cent from 13.7 million baht in 9M 2023 to 18 million baht in 9M 2024, while sales volume for the gloves grew 24.7 per cent year-on-year to 28,113 million pieces as at the end of 9M 2024.
In the update, the company said that it is well positioned to deliver high-quality gloves to consumers worldwide with its product mix, flexible lines, a production base in Thailand and a prime location for producing natural-rubber latex.
It added that it will continue to reduce production costs through the use of automation and advanced technologies to eliminate redundancies and achieve economies of scale. It is also exploring the application of artificial intelligence to enhance machinery efficiency to produce better quality and competitively priced products in a more sustainable way.
Shares of Sri Trang Gloves remained flat at S$0.50 on Friday, before the announcement.
