Sri Trang Gloves (Thailand) Public Company Limited (STGT) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;
STGT reported a net profit of 14,400 million baht, increased 2,170% from a net profit of 634 million baht. A significant increase in net profit was due to higher sales revenue to record at 30,405.1 million baht, growing 153.5% YoY, driven by the average selling price (ASP) that increased in every quarter due to higher demand for rubber gloves to protect contraction of Covid-19.
The ASP in 2020 rose 80.3% YoY to THB 1,087 (USD 34.93) per 1,000 pieces, driven by a surging demand globally, as gloves have become an essential personal protective equipment (PPE) not only in the healthcare and industrial sectors but also for other, new users following the outbreak of COVID-19.
Sales volume in 2020 grew 40.6% YoY to 27,965 million pieces on the back of the strong demand and additional capacity from February 2020 onwards from our existing plants in Songkla and Trang. Toward the end of 2020, STGT had to deal with a shortage of containers, which means some orders could not be delivered to customers, but the company’s production facilities were running at full capacity with the utilization rate of 94% throughout the year.
STGT recorded THB 16,802.8 in gross profit in 2020, increasing 1,067.9% YoY, on the back of an increase in ASP across all product types and the economies of scale that resulted from the company’s production facilities operating at full capacity. Gross profit margin increased to a new high in every quarter. For 2020, STGT’s gross profit margin was 55.3%, despite an increase in raw material prices, which rose 16.6% YoY for NR latex and 1.3% for NBR latex.
In addition, the Board of Directors approved a dividend payment of ฿2.00/share to be paid on April 28, 2021. The ex-dividend date will be on April 12, 2021.