STA Expects a Robust 2021 on Upswing NR Demand for Auto-Gloves Industries

Mr. Veerasith Sinchareonkul, Executive Director of Sri Trang Agro-Industry Public Company Limited (STA), the world’s leading producer and distributor of natural rubber products, stated that the company achieved an impressive growth in 2020 even though the world economy contracted as a result of the COVID-19 pandemic.

“We are confident that we’ll be able to maintain the growth trajectory this year because the rubber industry’s negative outlook is now a thing of the past and the world’s economic trend looks set to recover gradually. Demand for natural rubber is poised to be on the upswing. This is particularly true with the automobile industry, which needs natural rubber for tires, as well as the latex glove industry, which commands ever-stronger demand. These are the factors benefiting our growth,” Mr. Veerasith said.

 

The company earned a net profit of 9,531 million baht in 2020. Earnings from sales and services amounted to 75,479 million baht, an increase of 25% over earnings of 60,286 million baht in 2019.

The fourth quarter of 2020 performance showed steady growth, continuing the trend from previous quarters. The company earned 5,499 million baht in net profit, an increase of 7,331% compared to 26,246 million baht in the fourth quarter of 2019. Total revenue from sales and services stood at 26,246 million baht, increased by 76% compared to 14,881 million baht in the same period the year before.

STA’s strong growth was driven by increased world demand for rubber. Particularly, China’s economic recovery following its successful containment of the COVID-19 outbreak had a positive impact on the recovery of the automobile sector, leading to greater demand for natural rubber in tire production.

Furthermore, the 2020 performance of Sri Trang Gloves (Thailand) Public Company Limited (STGT), a subsidiary of STA and the world’s third-largest producer and distributor of latex and nitrile gloves, has reached a new high.

 

As a result of the positive performance, the company’s Board of Directors on February 16, 2021, has approved a dividend of 1.75 baht per share for 2020, totaling a payout of 2,688 million baht. The board also declared XD on 12 April 2021 and dividend payment on 29 April 2021.

Taken together with the interim dividend payment of 0.50 baht per share covering the period from January 1 to September 30 of 2020, the total dividend payout for the entire year of 2020 comes to 2.25 baht per share.