The steeper net loss comes as its top line decreases 5.6% year on year to 6.1 billion baht, even as sales volume rises
[SINGAPORE] Sri Trang Gloves’ net loss for the third quarter ended September widened to 106 million baht (S$4.3 million) from 86.5 million baht for the corresponding period in 2024, as the allowance for impairment of buildings and machinery and losses on financial derivatives weighed on profitability.
Excluding the allowance and losses on financial derivatives, it would have recorded a pre-tax operating loss of 500,000 baht, the glove maker said in a bourse filing on Friday (Nov 7).
The allowance was made in line with the company’s plan to replace machinery that is no longer used with new assets and technologies to enhance production efficiency and reduce costs.
The steeper net loss came as its top line decreased 5.6 per cent year on year to 6.1 billion baht, even as sales volume rose by 4.9 per cent to more than 10 billion gloves.
The average selling price, however, dropped 8.6 per cent on the year due to intense competition in the industry and the appreciation of the baht against the US dollar by 7.2 per cent.
For the nine months, however, the glove maker managed to turn in earnings of 395.3 million baht – 9.9 per cent lower than in the year-ago period. With a 2.2 per cent improvement, revenue reached 18.6 billion baht.
Interest coverage ratio in Q3 was 9.92 times, down from 11.74 times in the previous quarter, mainly due to a decline in earnings before interest, tax, depreciation and amortisation.
Shares of Sri Trang Gloves were flat at S$0.395 on Friday, before this announcement.
