GLOVE maker Sri Trang Gloves Thailand recorded a net profit of 1.67 billion baht (S$64.8 million) for the first fiscal half ending Jun 30, down 90.4 per cent from the 17.33 billion baht the company posted in the same period a year ago.
Earnings per share fell to 0.58 baht for H1 2022, down from 6.07 baht previously.
Revenue fell 51.9 per cent to 13.66 billion baht in H1 2022 from 28.4 billion baht previously. For quarter on quarter, revenue tumbled 49.6 per cent to 6.54 billion baht, from 12.97 billion baht recorded previously.
In a bourse filing on Wednesday (Aug 10), the company attributed the decline in revenue and profit margins to lower average selling prices (ASPs) resulting from increasing supply in the market.
"Sales volume was 7,627 million pieces, growing 32.6 per cent year on year but decreasing 3.5 per cent quarter on quarter as Covid-19 has been brought under control and demand started to normalise," the mainboard-listed company said.
Sri Trang gloves added that it is committed to achieving 57 billion pieces in annual installed production capacity by 2024, an adjustment to reflect the current industry climate.
"For FY2022, our annual installed production capacity is expected to reach 48 billion pieces, representing a 19.1 per cent growth from FY2021. 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 in our focus."
The counter closed flat at S$0.665 on Wednesday, before the results announcement.