STA Makes a Turnaround to Book ฿9.5Bn of Profit in 2020, Offering Bt1.75 Dividend Payment

Sri Trang Agro-Industry Public Company Limited (STA) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

STA reported a turnaround in 2020 earnings to record 9,532 million baht, recovered from a net loss of 148 million baht in 2019.

 

Total revenue from products and services in FY2020 was 75,478.7 million baht, growing 25.2% YoY. Revenue from NR products decreased 7.0% YoY to 44,678.1 million baht because sales volume dropped as a result of the COVID-19 pandemic and the suspension of operations by many tire manufacturers.

 

Sales volume rose by 40.8% YoY to 28,043 million pieces as the COVID-19 pandemic led to a surge in demand globally. The strong demand was reflected in the selling prices of all products that continued to increase in every quarter, with the ASP for FY2020 growing by 79.1% YoY.

 

Gross profit was 21,781.3 million baht, a significant increase of 348.7% YoY from 4,854.4 million baht in FY2019. The growth in gross profit came on the strength of both of STA’s businesses.

In the NR business, STA adjusted its strategy in response to the outbreak of COVID-19 by focusing on improving production efficiency, reducing fixed costs and energy consumption, as well as on customers with strong recovery potential. This was reflected in STA’s ASP of THB 138.3 cent/kg, which was higher than the average NR price on the global market in 2020. Gross profit margin for the NR business was 9.3%.

 

In addition, the Board of Directors approved a dividend payment of ฿1.75/share to be paid on April 29, 2021. The ex-dividend date will be on April 12, 2021.