[SINGAPORE] Sri Trang Gloves posted a net profit drop of 79.6 per cent year on year to 77.1 million baht (S$3.1 million) for the quarter ended June, as the rise in cost of goods sold outstripped revenue.
Revenue was up 4.6 per cent to six billion baht during the second quarter of FY2025, underpinned by recovery in worldwide demand.
However, cost of goods sold increased more, at 10.4 per cent to 5.5 billion baht, due to higher raw material prices and sales volume, resulting in a gross profit drop by 33.3 per cent.
Net foreign exchange loss also weighed on the Thailand-based manufacturer as it recorded as 112.8 million baht loss arising from the negative currency movement amid depreciation of the greenback against the baht.
In spite of the average selling price having risen by 6.2 per cent year on year in US dollar terms, the 9.8 per cent appreciation of the baht against the greenback eroded the price increase.
Sri Trang Gloves had posted net foreign exchange gain of 23.3 million baht for the year-ago period.
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Hence, earnings per share dropped to 0.03 baht from 0.13 baht.
It flagged the impact of the United States reciprocal tariffs during the quarter, which spawned increased price competition and holding back of orders from some wait-and-see American customers.
The average selling price dipped 8.3 per cent quarter on quarter because of increased price competition and the appreciation of the baht by 2.5 per cent against the US dollar.
Sri Trang Gloves delivered a 4.5 per cent lower net profit for the half year at 501.3 million baht while revenue rose 6.4 per cent to 12.5 billion baht.
Its shares were unchanged at S$0.235 on Friday, before the financial statements were published.
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