GLOVE manufacturer Sri Trang Gloves (Thailand) reported earnings of 378.4 million baht (S$14.2 million) for the three months ended Jun 30, a jump of more than 20 times from the 15.2 million baht booked in the previous corresponding period.
On a per-share basis, earnings per share rose to 0.13 baht, from 0.01 baht the year before.
The improved earnings come as revenue rose 13.9 per cent to 5.7 billion baht over the same period, from five billion baht the year before.
On Wednesday (Aug 14), the company noted that sales volume rose 10 per cent on the year to 8.4 billion pieces. This was driven by latex-powdered gloves and nitrile gloves, the sales of which rose 13.3 per cent and 34.3 per cent on the year, respectively.
While sales volume across all products fell on a quarterly basis due to seaport congestion and higher freight rates, Sri Trang Gloves said the global demand for gloves has recovered and is growing at its usual pace.
The rise in demand comes as the inventories of major distributors across all regions have returned to normal levels, added the company.
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Meanwhile, average selling prices for the second quarter rose 1.3 per cent on the year to 676 baht per 1,000 pieces, following a rise in costs of raw materials.
“The baht depreciated 2.9 per cent quarter on quarter against the US dollar,” said Sri Trang Gloves. “However, price competition remains as the global glove industry is gradually shaking off the oversupply.”
Gross profit for the quarter rose 48.3 per cent on the year to 773.6 million baht, mainly because the rise in average selling prices offset higher raw material costs.
For the first half of the fiscal year, net profit rose 256 per cent on the year to 525.2 million baht, from 147.5 million baht previously. Revenue grew by 22.5 per cent to 11.8 billion baht in H1 FY2024, from 9.6 billion baht in the previous corresponding period.
The company said that, with its unique product mix, it can alternate between producing latex powder-free gloves and nitrile gloves.
It added that it will continue to undertake cost-saving initiatives, such as the use of automation and technology, to achieve economies of scale and improve efficiency to create higher profit and returns to shareholders.
Shares of Sri Trang Gloves (Thailand) were trading flat at S$0.35 as at 9.43 am on Thursday.
