SINGAPORE (Nov 10): Sri Trang Agro-Industry announced that it has swung back to profitability in 3Q17, posting earnings of THB166.7 million ($6.8 million) compared to a loss of THB90.8 million in 3Q16.
The group’s revenue decreased 5.6% to THB18.2 billion from THB19.3 billion in the same period last year, mainly impacted by a 20.0% decline in sales volume of natural rubber (NR), despite offering by 9.6% increase in average selling price (ASP).
The decline in total NR sales volume was due to the appreciation of THB relative to other currencies of NR producing countries. The decrease in sales volume was mainly resulted from a decline in sales to China and Singapore due to the negative sentiments of NR price movement rather than demand-supply fundamentals
Cost of sales decreased 7.5% to THB16.9 billion from THB18.3 billion in 3Q16.
Hence, gross profit for the quarter came in at THB1.31 billion, 26.7% higher than THB1.04 billion in the previous year.
Looking forward, the group plans to expand the capacity of gloves from 14 billion to 16 billion pieces per annum which will be completed in 2Q18.
Moreover, it plans to strengthen its distribution in US and China, which are one of its international sales and distribution units.
Shares in Sri Tang closed 52 cents on Friday.
