North East Rubber Public Company Limited (NER) reported mixed financial results for the third quarter of 2025 (3Q25), as strong sales and volume growth were offset by weaker selling prices and higher costs.
Total revenue from sales rose 9.15% YoY to THB 6,727.27 million, up from THB 6,163.35 million in 3Q24. The increase was driven by a 14.73% rise in sales volume to 112,439 tons.
Domestically, sales revenue surged 15.44% to THB 5,029.30 million, accounting for 74.76% of total sales, while export revenue declined 6.01% to THB 1,697.97 million.
Despite robust top-line growth, net profit fell 9.48% YoY to THB 326.58 million, compared with THB 360.78 million in the same period last year. The decline was primarily driven by lower average selling prices amid the global downtrend in rubber prices.
Gross profit climbed 17.68% YoY, and operating profit jumped 27.67%, reflecting solid core business performance. However, these gains were eroded by higher expenses and non-operating losses.
- Administrative expenses rose 18.59%, partly due to a THB 32.65 million fire-related loss, representing the difference between the asset’s book value and the initial insurance compensation.
- Finance costs increased 19.10% to THB 137.05 million, following additional debenture issuances in December 2024.
- A sharp swing in derivative valuations also hurt the bottom line — from a THB 97.20 million unrealized gain in 3Q24 to a THB 17.65 million loss in 3Q25, marking a THB 118.16 million decline.
- On a positive note, distribution costs fell 15.78%, reflecting lower export volumes and reduced transportation costs.
