North East Rubber Public Company Limited (SET: NER) faced significant fiscal headwinds in the first quarter of 2026, reporting a 58.22% year-on-year decline in net profit. The company’s bottom line fell to THB 254.37 million, a sharp decrease from the THB 608.85 million recorded in 1Q25.
Total revenue from sales for the period stood at THB 7,207.73 million, representing a 17.13% decrease compared to the same period last year. This downturn was primarily driven by a 14.78% drop in the average selling price of rubber products, a result of sustained volatility in global natural rubber markets. While sales volumes saw only a marginal dip of 2.78% to 123,552 tons, the pricing pressure significantly eroded the top line.
The revenue decline was felt across both markets: domestic sales, which constitute 70.72% of total revenue, fell by 16.12% to THB 5,097.60 million, while export revenue dropped 19.48% to THB 2,110.12 million. Profitability was further squeezed as the gross profit margin narrowed from 10.61% to 8.62%. Although the cost of sales decreased by 15.29% to THB 6,586.65 million, this reduction was insufficient to offset the sharper decline in revenue.
A major non-operating factor impacting Q1 results was a net exchange rate loss of THB 49.58 million. This figure was largely driven by a substance THB 80.95 million unrealized accounting loss from the mark-to-market valuation of forward foreign exchange contracts, triggered by the continuous appreciation of the Thai baht.
On a more positive note, NER saw its corporate income tax expenses plummet by 80.42% to just THB 3.39 million. This significant reduction stemmed from the company utilizing tax exemptions under the BOI-CSR investment promotion certificate following strategic investments in community and social development. Despite the quarterly profit dip, the company’s total assets grew by 2.24% to THB 20,453.79 million as of March 31, 2026.
