GLOVE manufacturer Sri Trang Gloves (Thailand) (STGT) : STG 0% posted a 97.5 per cent decline in net profit to 15.2 million baht (S$583,455.13) for the three-month period ended Jun 30, 2023, from 616.5 million baht over the same period a year earlier.

Revenue fell 23 per cent to five billion baht over the same period, from 6.5 billion baht a year ago.

In a bourse filing on Thursday (Aug 10), the company noted that average selling price (ASP) for the second quarter of the year fell 25.5 per cent to 627 baht per 1,000 pieces. Still, this was the first time in two years that the ASP has risen, with prices up 5.1 per cent quarter on quarter.

Gross profit for the quarter also fell 60.7 per cent year on year to 521.7 million baht due to softening demand and lower ASP as Covid-19 was brought under control.

Nevertheless, sales volume rose 0.4 per cent year on year to 7.7 billion pieces.

“The volume growth was driven by latex powder-free gloves and nitrile gloves, which count North America and Europe as major consumers, reflecting an improved overstock situation,” the company said.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

It added that with its unique product mix, it can efficiently alternate between producing latex powder-free gloves and nitrile gloves.

“Cost-saving initiatives, such as the use of automation and technology to achieve economies of scale and improve efficiency to create higher profit and return to shareholders, will continue to be our focus,” it added. Utilisation rate for the company stood at 58.9 per cent in the second quarter of this year.

Shares of the company rose 3.8 per cent or S$0.01 to S$0.27 on Thursday, before the results were released.