GLOVE maker Sri Trang Gloves (Thailand) reported on Friday (Feb 16) a 10.1 per cent increase in net loss for the fourth quarter, despite higher sales volume and revenue.
Net loss for the three months ended Dec 31, 2023 rose to 42.3 million baht (S$1.6 million) from a 38.4 million baht loss in the year-ago period.
Sales revenue in the fourth quarter rose 11.5 per cent on year to 5.3 billion baht, on the back of higher volume.
The company said sales volume climbed 28.2 per cent on year in the fourth quarter to 8.8 billion pieces, which it attributed to a “diversified customer base and strong presence in Asia, Africa and South America, where there is strong consumption growth and a preference for latex gloves”.
However, the company noted that average selling price of gloves in FY 2023 was 605 baht per 1,000 pieces, down 24.2 per cent on year due to the “ongoing oversupply situation”.
Gross profit for the fourth quarter was down 12.4 per cent year on year to 548.4 million baht, due to higher cost of goods sold, amid higher latex costs.
Sri Trang Gloves also said it decommissioned some production lines at its Hat Yai and Surat Thani plants that accounted for around 4.5 billion pieces in installed capacity, as production lines at its new plants yield higher efficiency with lower production costs. This also resulted in an impairment loss in the fourth quarter.
For the full year, Sri Trang Gloves reported net profit of 152.7 million baht, down 90.8 per cent from FY2022. On a per share basis, earnings fell to 0.05 baht, from 0.58 baht a year earlier.
The board has proposed a dividend of 0.5 baht per share. The payment will come from retained earnings and is subject to shareholder voting at the annual general meeting.
Sales volume in FY2023 totalled 31.4 billion pieces, growing 8.9 per cent from FY2022. However, the lower average selling price meant that sales revenue fell 15.6 per cent to 19.7 billion baht.
Shares of Sri Trang Gloves closed unchanged at S$0.245 on Friday, before the announcement.
