North East Rubber Public Company Limited (SET: NER) reported impressive financial performance for the third quarter of 2026, delivering a net profit of THB 511.68 million, up 56.68% YoY compared to THB 326.58 million in 3Q25. The strong bottom-line expansion drove the net profit margin up to 6.30% from 4.86% in the prior-year period.
Top-line revenue from sales surged 20.54% YoY to THB 8,109.27 million. Revenue growth was anchored by a 28.78% YoY jump in domestic sales to THB 6,476.57 million, accounting for 79.87% of total sales revenue. International sales experienced a slight dip, contracting 3.84% YoY to THB 1,632.70 million. Meanwhile, total sales volume declined modestly by 2.84% YoY to 109,251 tons.
Profitability strengthened significantly as revenue growth outpaced the cost of sales, which rose 18.68% YoY to THB 7,271.57 million. Consequently, gross profit expanded 39.55% YoY to THB 837.71 million, with the gross profit margin broadening to 10.33% from 8.92% in 3Q25.
Several operating and non-operating factors impacted the P&L statement:
- Operating Expenses: Distribution costs rose 2.76% YoY to THB 87.84 million due to higher freight and commission charges, while administrative expenses climbed 6.28% YoY to THB 60.66 million.
- Foreign Exchange: NER recorded a net FX loss of THB 17.40 million, which included a realized FX loss of THB 30.86 million partially offset by an unrealized derivative gain of THB 13.46 million from USD forward contracts.
- Finance Costs & Income Tax: Finance costs fell 5.39% YoY to THB 129.67 million thanks to interest savings from early debenture redemptions. Income tax expense increased to THB 31.77 million (compared to a tax benefit of THB 14.34 million in 3Q25) following the expiration of certain BOI promotional privileges.
Overall, operating profit surged 49.82% YoY to THB 673.13 million, highlighting robust core operations that comfortably offset tax headwinds.
