Sri Trang Agro-Industry posts Q3 loss of 841.9 million baht amid lower rubber prices, tariff uncertainty

Sri Trang Agro-Industry fell into the red with a net loss of 841.9 million baht (S$33.8 million) for the third quarter ended Sep 30, reversing from a net profit of 517.3 million baht for the corresponding period a year earlier.

This came amid lower revenue, said the Thailand-based, Singapore-listed rubber group in a bourse filing on Friday (Nov 7).

Revenue for Q3 fell 31.8 per cent year on year to 21.6 billion baht, from 31.6 billion baht previously. Sri Trang Agro-Industry said this was due to lower average selling prices of its products and weighed down by prolonged uncertainty over US tariffs.

Revenue from the group’s natural rubber business – which made up 71.8 per cent of total revenue – fell 37.7 per cent year on year to 15.5 billion baht. This was attributed mainly to lower sales volumes and average selling prices.

Sri Trang Agro-Industry said that, by geography, China remained its largest market for natural rubber, accounting for 50.7 per cent of total revenue.

This was followed by Thailand (20.4 per cent), other Asian countries (12.3 per cent), Europe (8.8 per cent), the Americas (7.5 per cent) and other markets (0.3 per cent).

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As for its glove business – which contributed 28.1 per cent of total revenue – Sri Trang Agro-Industry posted a 5.1 per cent year-on-year decline in Q3 revenue to 6.1 billion baht.

Despite a “10.7 per cent rise in sales volume, supported by the return of orders from customers who had previously postponed purchases”, the group noted that the average selling price of its gloves fell 7.6 per cent quarter on quarter to 598 baht per 1,000 pieces.

This, it added, reflected “continued intense competition in the industry (and) the appreciation of the Thai baht against the US dollar”.

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Sri Trang Agro-Industry’s loss per share stood at 0.55 baht for Q3 FY2025, from earnings per share of 0.34 baht a year earlier.

The group said the US’ reciprocal tariffs have “continued to create uncertainty in the global market, prompting buyers to adopt a more cautious approach and delay new orders”.

It added that the decline in global rubber prices since the previous quarter has continued to weigh on its performance.

Nevertheless, Sri Trang Agro-Industry said it has remained resilient, pointing to its “strong operating cash flow”, as well as its earnings before interest, taxes, depreciation and amortisation of 449.4 million baht. The group added that it maintained a “solid financial position”, with a net debt-to-equity ratio of 0.6.

Shares of Sri Trang Agro-Industry closed flat at S$0.495 before the news.