Sri Trang Agro-Industry Public Company Limited (“STA” or the “Company”) announced robust performance for Q1/2025, recording total revenue from sales and services of THB 34,385 million and a net profit of THB 689 million. This marks a significant improvement compared to the same period last year, driven by rising natural rubber prices and a consistent increase in rubber sales volume for six consecutive quarters. The upward trend in rubber glove prices also contributed to the strong results. The Company does not anticipate a material impact from the recent U.S. reciprocal tariffs, as revenue from the U.S. market accounts for only 10% of total revenue and primarily involves products exempted from the new tariff measures. STA’s management continues to closely monitor the global trade environment and remains committed to executing strategies that strengthen the Company’s long-term competitiveness.
Mr. Veerasith Sinchareonkul, Chief Executive Officer of Sri Trang Agro-Industry Public Company Limited (STA), the world’s largest fully integrated natural rubber company and Thailand’s leading rubber glove manufacturer, announced the Company’s continued strong performance in Q1/2025. The Company reported revenue from sales and services of THB 34,385 million, representing a 45.2% increase YoY and a 3.4% increase QoQ. Net profit for the quarter totaled THB 689 million, a significant turnaround from a net loss in the same period last year, although it marked a 19.4% decline from the previous quarter. Mr. Veerasith explained that the QoQ decrease in net profit was primarily due to a one-time revenue of THB 483 million recorded in Q4/2024, resulting from interest income from a long-term loan supported by the Rubber Authority of Thailand (RAOT). Excluding this non-recurring item, the Company’s core performance demonstrated solid underlying growth.
The Company’s growth was primarily driven by a sustained increase in total natural rubber sales volume across all product categories, which reached 396,955 tons, representing a 24.9% increase YoY and a 2.6% increase QoQ. This figure includes approximately 43,000 tons of rubber delivered under the EUDR (EU Deforestation Regulation) compliance, reflecting continued demand despite a slight slowdown compared to the previous quarter. In addition, the Company’s gross profit margin improved significantly, rising to 9.1%, compared to 7.9% in the same period last year and 7.5% in the previous quarter.
Mr. Veerasith further stated that the recent announcement of reciprocal tariff by the United States is not expected to have a significant impact on the Company. This is because the Sri Trang Group’s revenue from sales of natural rubber and rubber gloves to the U.S. accounted for only 10% of its total revenue in the previous year. Additionally, the U.S. consumes just 4–5% of global natural rubber demand due to its relatively limited domestic tire manufacturing base.
Natural rubber has been classified among the product categories exempted from the latest round of U.S. reciprocal tariff, so Thai natural rubber products may not be directly affected. However, the Company continues to closely monitor the situation to ensure a timely and effective response. This is particularly important because STA operates within the tire industry’s global supply chain, which may be subject to indirect impacts. At present, customers both in Thailand and overseas are assessing the implications of ongoing trade negotiations between the U.S. and affected countries, including Thailand. Mr.Veerasith noted that once greater clarity emerges, the Company expects to benefit from increased purchase orders, supported by strong customer confidence and longstanding relationships. Furthermore, STA has made substantial progress in expanding its natural rubber production capacity, particularly in Technically Specified Rubber (TSR). The Company has already completed over 90% of its expansion target of 4.0 million tons by 2026, under an investment plan that has been actively pursued over the past 2–3 years.
We remain focused on enhancing our competitiveness and maintaining operational flexibility in order to navigate various risk factors including economic conditions, trade policies, and geopolitical developments," Mr. Veerasith added. "Our approach emphasizes close communication with customers, and the year 2025 will be pivotal for the Company as we begin to fully leverage the production capacity investments made in recent years. We will gradually increase our utilization rate in alignment with order volumes during each period. This strategy will serve as a key driver for the long-term growth of the Sri Trang Group.