Sri Trang Agro-Industry posts Q3 loss of 410 million baht on lower revenue, selling prices
Uma Devi
RUBBER group Sri Trang Agro-Industry on Monday (Nov 27) reported a net loss of 410.2 million baht (S$15.6 million) for the third fiscal quarter ended September.
This is a reversal from earnings of 1.5 billion baht in the corresponding year-ago period.
In a business update, the group said revenue for the quarter under review was down 42.5 per cent to 16.9 billion baht. This was due mainly to a 37.9 per cent decline in the sales volume of natural rubber, as well as a 20.6 per cent fall in the average selling price of natural rubber to US$1,428 per tonne from US$1,799 per tonne.
Results were mixed on the gloves front. Sales volume was up 19.1 per cent, while the average selling price dropped 18.6 per cent to US$17.30 per 1,000 pieces versus US$21.10 per 1,000 pieces in the year-ago period.
Despite the weaker showing, Sri Trang Agro outlined some expansion plans in its update.
The company said it has an investment budget of nine billion baht for an “aggressive expansion” in technically specified rubber (TSR).
The company will be adding 10 plants by 2025 with total additional capacity of 946,080 tonnes, which will bring its total TSR engineering capacity to about 3.3 million tonnes.
For latex, Sri Trang Agro said it has an investment budget of 950 million baht for capacity expansion. It will add two projects over this year and 2024 that have a collective capacity of 131,400 tonnes.
Shares of Sri Trang Agro closed flat at S$0.59 on Monday.
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