Sri Trang sinks into red with Q4 loss of 503.8 million baht on production drop due to floods, impairment losses

[SINGAPORE] Mainboard-listed Sri Trang Gloves on Thursday (Feb 19) posted a net loss of 503.8 million baht (S$20.5 million) in the fourth quarter ended Dec 31, 2025, compared to a net profit of 556.7 million baht in the same period the year before.

This came as the Thai glove maker’s fourth-quarter sales revenue fell 22.2 per cent year on year to 5.3 billion baht from 6.8 billion baht. Sales volume over the same period dropped 16.1 per cent year on year to 8.8 billion pieces from 10.4 billion pieces.

The decline was primarily driven by lower sales volume following production suspension during a flooding incident in the Hat Yai area in late 2025, said Sri Trang Gloves, which is dual-listed on the Singapore Exchange and the Stock Exchange of Thailand.

The company noted that the average selling price of all glove products in FY2025 declined 0.8 per cent year on year to 636 baht per 1,000 pieces, largely due to a 6.9 per cent appreciation of the baht. However, in US dollar terms, the average selling price improved 6.5 per cent year on year to US$19.44 per 1,000 pieces.

Sri Trang Gloves proposed a dividend payment of 0.50 baht per share from retained earnings. The dividend is subject to shareholder approval at its upcoming annual general meeting.

Meanwhile, the company noted that its utilisation rate in FY2025 declined to 77.7 per cent, from 82.8 per cent the year before.

For the full year ended Dec 31, the company posted a net loss of 108.6 million baht, a turnaround from a net profit of 995.3 million baht the previous year. Total sales revenue fell 4.4 per cent year on year to 23.9 billion baht from 25 billion baht.

The bottom line was significantly affected by the recognition of one-time expenses during the second half of the year, including flood-related damages and impairment allowances for older factories.

Sri Trang Gloves said that it will continue to focus on increasing production of speciality gloves in response to specific customer demand, such as that for non-detectable protein gloves, surgical gloves and diamond-textured gloves used in the industrial sector.

The company also expects to grow its customer base from 175 countries currently to more than 190 countries within the next two years to help diversify revenue.

It added that it will continue to manage utilisation rates and provide reasonable returns in the long run, as the glove industry goes through a normalisation period. The company is also exploring the adoption of artificial intelligence to optimise machinery performance and reduce production costs.

Shares of Sri Trang Gloves rose 4.6 per cent or S$0.015 to close at S$0.34 on Thursday, before the results were announced.