Sri Trang Gloves (Thailand) posted net profit of THB47.4 million ($1.77 million) for 3QFY2023 ended Sept 30, up 212.5% q-o-q and 117.6% y-o-y.
Earnings per share for the quarter increased to 2 cents compared to 1 cent in 3QFY2022.
Revenue for 3QFY2023 came in at THB4,740.9 million, decreasing 2.9% y-o-y, while its cost of sales were THB4,145.5 million
Sri Trang Gloves’ gross profit totaled THB595.4 million, increasing THB73.7 million or 14.1% q-o-q and THB35.8 million or 6.4% y-o-y with a gross profit margin of 12.6%, which increased by 2.2% points from 2QFY2023 and 1.1% percentage points from 3QFY2022 as costs decreased.
The company’s earnings growth came as a result of lower natural rubber (NR) and nitrile (NBR) latex costs, as well as the Thai Baht’s depreciation against the US Dollar.
Sales volume totaled 7,597 million pieces, decreasing 0.8% q-o-q but growing 19.1% y-o-y. The y-o-y volume growth was driven by a 12.4% increase in latex powdered gloves (NRPD) gloves, which count Asia and Latin America as major markets, indicating that an order situation in those markets has started to return to normal.
Despite the slightly lower quarterly sales volume, Sri Trang Gloves STG 0.00% ’ utilisation rate maintained at 59% amid persisting oversupply.
As at Sept 30, total assets stood at THB47,546.4 million, decreasing THB 982.1 million or 2.0% from Dec 31, 2022.
Sri Trang Gloves says it remains committed to maintaining its position as a leading producer and distributor of natural rubber gloves, capitalising on its competitive advantage over competitors in cost, quality and access to raw material.
It also aims to grow its market share from over 170 countries currently to over 190 countries within the next 2 years.
The Thailand-based company is a subsidiary of Sri Trang Agro-Industry, which is also dual-listed in Thailand and Singapore. Sri Trang Gloves manufactures natural rubber gloves, powder-free natural rubber gloves and nitrile gloves.
Shares in Sri Trang Gloves closed flat at 23 cents on Nov 8.
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