Sri Trang Gloves (Thailand) Public Company Limited (STGT) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;
STGT reported a net profit of 4,401 million baht in 3Q20, increased tremendously by 3,464% compared to the same period of last year. The increase was due to higher demand for rubber gloves amid the coronavirus outbreak.
The company recorded a record high in revenue of 8,142.1 million baht, representing a growth of 67.6% QoQ and 169.9% YoY. Sales revenue in 3Q20 was 8,142.1 million baht, growing 67.6% QoQ and 169.9% YoY, driven by an increase in average selling price (ASP) of 73.2% QoQ and 89.1% YoY to THB 1,014 (USD 36.3) per 1,000 pieces.
NBR gloves led the growth in ASP, buoyed by strong demand and purchasing power from over the world, particularly the USA and Europe. Sales volume rose 42.8% YoY on the back of growing global demand and additional capacity from our Hat Yai and Trang plants, which were fully commissioned in February 2020.
However, sales volume decreased slightly by 3.2% QoQ as shipping logjams caused delays for ocean freight particularly to the USA, despite our production facilities operating at full capacity of 95% utilization rate.
By product, revenue from latex powdered gloves (NRPD) accounted for 39.5% of total sales revenue, while revenue from latex powder-free gloves (NRPF) and nitrile gloves (NBR) made up 22.9% and 37.6% of sales revenue, respectively. Our one-of-a-kind switchable production lines afford us the flexibility to adjust our product mix and increase production of NBR gloves during a high demand period. In 3Q20, sales revenue from NBR gloves increased by 78.8% QoQ.
STGT recorded 4,907.5 million baht in gross profit, increasing 246.2% QoQ and 1,421.9% YoY on the strength of an increase in ASP across all product types and the economies of scales that resulted from our production facilities operating at full capacity.
The company’s gross profit margin rose from 29.2% in 2Q20 and 10.7% in 1Q19 to reach a record high of 60.3%, despite increased raw material prices, which rose 10.8% QoQ and 3.4% YoY for NR latex and 18.6% YoY for NBR latex (which remained unchanged YoY).