Sri Trang Agro-Industry Public Company Limited (SET: STA) faced a turbulent 2025, turning from a profitable 2024 to a net loss as global trade measures and natural disasters weighed heavily on the bottom line. The company reported a net loss of THB 1,265.7 million for the full year, a sharp reversal from the THB 1,670.4 million profit recorded in 2024.
Revenue Stability vs. Margin Squeeze
Total revenue for 2025 remained broadly stable at THB 113,477.8 million, a marginal decrease of 0.8% year-on-year. The natural rubber segment showed resilience with a slight 0.2% revenue increase, supported by growth in EUDR-compliant rubber sales. However, the glove business saw revenue decline by 4.1% due to intense price competition and the appreciation of the Thai Baht, which reduced revenue when translated from USD.
Despite stable top-line figures, profitability was severely impacted by a 34.6% drop in gross profit, which fell to THB 7,079.5 million. The gross profit margin thinned to 6.2% from 9.5% in 2024. This decline was primarily driven by a sharp 20% drop in global rubber prices following the announcement of the U.S. Reciprocal Tariff measures, causing selling prices to fall faster than raw material costs. Consequently, EBITDA plummeted 47.8% YoY to THB 4,048.7 million.
Operating Expenses and One-time Hits
Selling, General & Administrative (SG&A) expenses rose 3.2% to THB 8,225.7 million. The fourth quarter was particularly pressured by flooding in Songkhla Province, which damaged factories and necessitated the recognition of THB 745.7 million in special expenses. Notably, STA indicated that excluding these one-time items, the company would have recorded a pre-tax profit of THB 1,621.7 million for the year.
Financial Position and Dividends
Despite the reported loss, STA maintained a solid capital structure, with the net debt-to-equity ratio improving to 0.64 times from 0.77 times at year-end 2024. Reflecting this stability, the Board of Directors proposed a dividend payment of THB 0.50 per share from retained earnings. The dividend payment date is scheduled for May 8, 2026, with ex-dividend (XD) date on April 21, 2026.
