STA Reports a Soaring Profit of 14 Folds to Book ฿2Bn in 3Q, Offering ฿0.50 Dividend

Sri Trang Agro-Industry Public Company Limited (STA) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

STA reported a net profit of 2,084 million baht in 3Q20, increased 1,443% compared to a net profit of 135 million baht in 3Q19.

In 3Q20, STA had THB 16,496.0 million in combined revenue from NR and glove operations, up 7.2% YoY and 8.1% QoQ. The growth in revenue came on the strength of its glove business, where revenue was higher because of an increase in average selling price and sales volume.

Sales volume for gloves rose 40.8% YoY but dropped 4.5% QoQ because of shipment logjams in ocean freight to the US, even though the production facilities were operating at full capacity. Revenue from NR operations was down because of low NR prices on the global markets from late April until late July, when orders were placed for 3Q20 shipment (2-3 months in advance).

Gross profit substantially increased from 6.3% in 3Q19 and 16.2% in 2Q20 to 34.1%. Finance costs were lower as a result of prepayment and lower interest rate that reflected our strong financial position.

 

The Board of Directors of STA also approved the interim dividend payment from the Company’s operational result as shown in the Financial Statements ending on 30 September 2020 at THB 0.50 per share, totaling THB 786 million.