STGT Reports a Robust Profit in 1Q at ฿421m over Outstanding Sales Volume of Latex Gloves

Sri Trang Gloves (Thailand) Public Company Limited (STGT) has announced its 1Q20 financial statement through the Stock Exchange of Thailand as follows;

STGT’s total revenue for the 1st quarter of 2020 was THB 3,759.17 million, increased by THB 769.92 million or 25.8% from the 1st quarter of 2019. The company’s net profit for the 1st quarter of 2020 was THB 421.89 million, increased by THB 273.33 million or 184.0% from the 1st quarter of 2019.

 

The increase in net profit was mainly due to a higher gross profit from an increase in sales volume of latex gloves which lead STGT to benefit from an economy of scale. Furthermore, the new production lines from the expansion of Hat Yai plant and Trang plant were both equipped with high technology, resulting in a more efficient production which helped the company to reduce the cost of sales.

In addition, there was a decrease in the company’s weighted average purchase price of synthetic rubber in the 1st quarter of 2020, together with a reduction in finance cost from lower interest rates and a reduction of corporate income tax from its corporate income tax exemption privileges under the promotion certificate from the Board of Investment (BOI) from the expansion of Hat Yai plant and the expansion of Trang plant, netting off an increase in selling expenses and an increase in administrative expenses.

 

STGT reported that the revenue from sales of latex gloves was THB 3,760.56 million in the 1st quarter of 2020, increased by THB 769.20 million or 25.7% from the 1st quarter of 2019, which was mainly due to an increase in sales of latex gloves as a result of the expansion of Hat Yai plant and Trang plant which had both fully commenced all production lines in the 1st quarter of 2020, as well as the rising demand for latex gloves in the world market due to the outbreak of coronavirus (COVID-19), netting off a decrease in gain on exchange rates and a decrease in finance income from the deposit interest rate which has decreased since the 1st quarter of 2019.

 

STGT will initiate its first trading day in the Stock Exchange of Thailand (SET) on July 2, 2020.