Glove Maker Sri Trang Gloves Posts Net Profit Turnaround in Q4
Improved Revenue and Utilization Rate Contribute to Profit Turnaround
Sri Trang Gloves (Thailand) reported a net profit of 556.7 million baht (S$22.1 million) in the fourth quarter ended December 31, 2024, a significant turnaround from its net loss of 59.9 million baht in the same period the year before.
Revenue and Sales Volume Rise
The company’s fourth-quarter revenue rose 27.6% to 6.8 billion baht, from 5.3 billion baht in the same period the year before. Sales volume also increased 18% year on year to 10.4 billion pieces.
Average Selling Price of Gloves Rises
The average selling price of gloves in FY24 rose 6.1% year on year to 642 baht per 1,000 pieces, driven by higher prices for natural rubber and nitrile gloves, as well as an improving oversupply situation.
Proposed Dividend
Sri Trang Gloves proposed a dividend of 0.50 baht a share, up from 0.25 baht a share the year before. The dividend is subject to shareholder approval at its upcoming annual general meeting.
Key Points
- Q4 2024:
- Revenue: 6.8 billion baht (+27.6%)
- Net profit: 556.7 million baht (NM)
- Dividend: 0.50 baht a share
Improved Utilization Rate
The company’s utilization rate in FY24 improved to 82.8%, from 64.2% the year before.
FY24 Results
For the full year ended December 31, 2024, the company posted a 551.9% increase in net profit to 995.3 million baht, as revenue rose 27.1% to 25 billion baht.
Future Plans
Sri Trang Gloves plans to focus on increasing production of specialty gloves in response to specific customer demand, such as non-detectable protein gloves, surgical gloves, and diamond-textured gloves used in the industrial sector. The company also expects to widen its customer base to over 190 countries over the next two years, from 175 countries currently.
Conclusion
Sri Trang Gloves’ turnaround in the fourth quarter is a testament to the company’s efforts to improve its operations and capitalize on market trends. With its focus on specialty gloves and plans to expand its customer base, the company is well-positioned for future growth and profitability.
Frequently Asked Questions
Q: What was Sri Trang Gloves’ net profit in Q4 2024?
A: 556.7 million baht (S$22.1 million)
Q: How did Sri Trang Gloves’ revenue change in Q4 2024?
A: 27.6% increase to 6.8 billion baht
Q: What is Sri Trang Gloves’ proposed dividend?
A: 0.50 baht a share, subject to shareholder approval at its upcoming annual general meeting.
