Sri Trang Gloves back in the black with 556.7 million baht in Q4 net profit

GLOVE maker Sri Trang Gloves (Thailand) posted a net profit of 556.7 million baht (S$22.1 million) in the fourth quarter ended Dec 31, 2024, a turnaround from its net loss of 59.9 million baht in the same period the year before.

This came as fourth quarter revenue rose 27.6 per cent to 6.8 billion baht, from 5.3 billion baht the year before. Sales volume over the same period rose 18 per cent year on year to 10.4 billion pieces.

In its financial statement on Monday (Feb 17), the company noted that the average selling prices of gloves in FY24 rose 6.1 per cent year on year to 642 baht per 1,000 pieces on the back of higher prices for natural rubber and nitrile gloves, as well as an improving oversupply situation.

Sri Trang Gloves proposed a dividend of 0.50 baht a share, up from 0.25 baht a share the year before. The dividend is subject to shareholder approval at its upcoming annual general meeting.

Meanwhile, the company also noted that its utilisation rate in FY24 improved to 82.8 per cent, from 64.2 per cent the year before.

For the full year ended Dec 31, 2024, the company posted a 551.9 per cent increase in net profit to 995.3 million baht, as revenue rose 27.1 per cent to 25 billion baht.

Sri Trang Gloves said that it will continue to focus on increasing production of specialty gloves in response to specific customer demand, such as that for non-detectable protein gloves, surgical gloves and diamond-textured gloves used in the industrial sector.

The company also expects to widen its customer base to over 190 countries over the next two years, from 175 countries currently.

It added that it would continue to manage utilisation rates and profitability to achieve “optimal profitability and provide reasonable returns” in the long run, as the glove industry undergoes a period of normalisation.

Sri Trang Gloves closed flat at S$0.305 on Monday, before the results were released.