Chuwit Jungtanasomboon, Chief Executive Officer of North East Rubber Public Company Limited (SET: NER), announced that for the first quarter of 2025, the company reported a net profit of THB 608.84 million, representing an increase of THB 155.22 million or 34.22% compared to the same quarter of 2024, when net profit was THB 453.61 million.
Sales volume reached 127,090 tons, up 10.88% from 114,619 tons in 1Q24, generating total sales revenue of THB 8,698.02 million. This marked an increase of THB 2,156.17 million, or 32.96%, from THB 6,541.85 million in the previous year.
Breaking down total sales, domestic sales revenue reached THB 6,077.46 million, accounting for 69.87% of total revenues—a growth of THB 1,207.90 million or 24.81% versus THB 4,869.56 million in 1Q24.
International sales revenue was THB 2,620.56 million, constituting 30.13% of the total, up by THB 948.27 million or 56.71% from THB 1,672.29 million in the same quarter last year.
The surge in sales revenue was driven by an increase in rubber prices compared to the same period last year. The average rubber price rose by 19.90%. Of the increased sales, THB 1,443.66 million was attributed to price gains, while an additional THB 711.74 million came from higher volumes sold.
In 1Q25, NER also saw the impact of foreign exchange volatility. The company recorded a realized foreign exchange loss of THB 13.25 million due to payments received from overseas customers.
However, it posted an unrealized gain of THB 27.57 million from the valuation of derivative instruments acquired to hedge against FX risks. Netting these figures, the company achieved a positive FX gain of THB 14.33 million in the first quarter.
Regarding investments, NER reaffirmed its readiness for the Phase 3 expansion project of its Standard Thai Rubber factory (STR3). Although land preparations are already underway, the company has decided to delay the construction phase to further evaluate the potential impact of the US government’s Reciprocal Tariffs policy under President Donald Trump’s administration.
Nonetheless, NER remains committed to its long-term capacity expansion strategy to strengthen its market share in the rubber industry.
