STA Reports 64% Decrease in 3Q22 Profit from Weak Selling Prices from Gloves Segment

Sri Trang Agro-Industry Public Company Limited (SET: STA) announced its 3Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q22 3Q21
Net Profit (Loss)
Million Baht
1,155.89 3,230.78
Earning Per Share
0.7500 2.1000
% Change -64.22
9 Months 2022 2021
Net Profit (Loss)
Million Baht
3,807.03 14,232.99
Earning Per Share (Baht) 2.4800 9.2700
% Change -73.25

STA recorded a net profit of THB 1,155.9 million in 3Q22, a decline of 64% from the same period of last year. Gross profit margin for the quarter was 13.3% and a net profit margin was 3.9%.

In 3Q22, we had THB 29,359.0 million in total revenue, increasing 3.1% YoY and 5.0% QoQ. Revenue from NR products, which accounted for 89.3% of total revenue, was THB 26,205.8 million, growing 47.9% YoY and 17.2% QoQ on the back of the ASP that increased 15.1% YoY and 3.4% QoQ from futures contracts that were agreed upon before NR prices started trending down as well as the depreciation of THB. Sales volume also rose 28.5% YoY and 13.4% QoQ to 400,131 tons, the 9th consecutive quarterly growth. Utilization rate in 3Q22 stood at 70% and gross profit margin for NR products was 13.7%.

Revenue from gloves accounted for 16.7% of total revenue and totaled THB 4,911.8 million, decreasing 54.5% YoY and 23.4% QoQ because of lower ASP. Sales volume was 6,381 million pieces. Gross profit margin for gloves was 11.2%.

Gross profit in 3Q22 was THB 3,893.1 million, decreasing 52.3% YoY and 8.2% QoQ because the ASP and sales volume of gloves were lower as a result of increasing supply in the market. Gross profit from NR products significantly increased 39.3% YoY and 19.6% QoQ on the back of both higher sales volume and ASP, as gross profit margin for NR products improved to 13.7%, from 13.0% in 2Q22 and 13.6% in 3Q21. Taking account of the reversal of inventory allowance in the amount of THB 352.7 million and realized gains from NR hedging transactions of THB 349.5 million, our adjusted gross profit margin in 3Q22 would be 15.7%, down from 15.9% in 2Q22 and 26.7% in 3Q21.