Thai Rubber Glove Producer and ‘Sri Trang Agro’ Report Lower Profit as Selling Prices Decline

The share price of Sri Trang Gloves (Thailand) Pcl. and its parent company Sri Trang Agro-Industry Pcl. edged lower on Wednesday after the announcement of 1Q23 earnings that saw profit at a lower level.


STGT dropped THB 0.20 or 2.06% to THB 9.5 per share at the open on Wednesday, while STA fell THB 0.50 or 2.45% to THB 19.90 per share.


STGT, one of the world’s leading rubber gloves producers, reported a net profit of THB 132.3 million in the first quarter of 2023, a decrease by 87% YoY, but improved from a net loss of THB 38 million in 4Q22.

In 1Q23, STGT had revenue of THB 4,581.1 million, decreasing 3.8% QoQ and 35.6% YoY because the ASP continued to decline as supply in the global market has substantially increased while demand has normalized after COVID has been brought under control. Sales volume was 7,287 million pieces, growing 5.7% QoQ but decreasing 7.8% YoY. A focus on NR gloves and a product mix of 81.1% of NR gloves and 18.9% of NBR gloves differentiates us from peers.


Meanwhile, STA reported a net profit of THB 287 million baht in 1Q23, representing a decrease by 81% YoY and 71% QoQ.

In 1Q23, STA had THB 24,426.3 million in total revenue, decreasing 12.8% YoY and 3.5% QoQ. Revenue from NR products, which accounted for 81.7% of total revenue, was THB 19,961.4 million, decreasing 4.6% YoY and 3.4% QoQ on the back of the ASP that declined 18.7% YoY and 13.9% QoQ. Sales volume rose 14.6% YoY and 3.6% QoQ to 399,933 tons. Utilization rate in 1Q23 stood at 71% and gross profit margin for NR products was 11.6%.

Revenue from gloves accounted for 18.0% of total revenue and totaled THB 4,408.1 million, decreasing 37.5% YoY and 4.4% QoQ because of lower ASP. Sales volume was 7,288 million pieces. Gross profit margin for gloves was 9.6%.

Gross profit in 1Q23 was THB 2,731.8 million, decreasing 39.6% YoY and 13.1% QoQ because of the lower ASP of gloves and NR products. Gross profit margin for NR products was 11.6%, down from 12.1% in 1Q22 and 12.5% in 4Q22.