SGX-listed Sri Tang Gloves net profit down by 42.8% in Q1

Lower margins stemmed from decrease in average selling price.

Whilst its sales volume went up and hit the highest level, Thailand-based Sri Tang Gloves recorded a 42.8% decline in its net profit to $42,249,544 ($THB1,052,200,000) in the first quarter (Q1) of 2022 from $73,870,449 ($THB1,839,700,000) in the previous quarter.

In its financial statement, the SGX-listed latex powdered glove provider revealed that its average selling price (ASP) went down because of price competition in the market which was caused by increased new supply. This also resulted in a shrinkage in the margin.

Gross profit also declined by 32.9% to $69,959,495 ($THB1,742,300,000) in Q1 2022 from $104,274,702 ($THB2,596,900,000) in the fourth quarter (Q4) of 2021.

Sales volume went up by 4% to $317,417,670 ($THB7,905,100,000) in Q1 2022  from $305,331,457 ($THB7,604,100,000) in Q4 2021.

The firm attributed the volume growth to “capacity expansion and improved situation of containers and ocean vessel space shortage.”

Even as the ASP decreased quarter-on-quarter in Q1 2021, the increase in sales volume in Asia was able to fully offset.

For other markets such as North America and Latin America, the company sees that it could maintain positive momentum due to highly diversified products compared to peers.

$1 = $THB 24.90