Sri Trang Agro-Industry Public Company Limited (“STA” or the “Company”) anticipates a stronger second half for the global natural rubber industry, driven by rising demand following greater clarity on U.S. tariff rates, with several countries having received formal announcements. STA aims to drive its operations back to profitability, supported by positive momentum in its glove business. In Q2/2025, the Company posted sales and service revenue of THB 30,841 million, up 19.4% YoY, but recorded a net loss due to the impact of U.S. reciprocal tariff measures, which caused natural rubber prices to fall by approximately 20%. Global commodity price declines also added pressure, but STA continues to maintain strong cost management and enhance production and operational efficiency.
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, said global demand for natural rubber is expected to rise in the second half of the year, driven by greater clarity on the U.S. reciprocal tariff, which has reached agreements with several countries and enables better industry planning. This should benefit the Company’s performance, while the finalized 19% U.S. import tariff on Thai rubber gloves—matching rates for other ASEAN producers—ensures STA remains competitive. The Company will continue expanding both natural rubber and glove markets to drive growth, particularly in gloves, in the second half of the year.
STA remains committed to returning to profitability in the second half of 2025 through a focus on cost management efficiency. However, the Company continues to closely monitor global natural rubber prices, which have been softening since Q2/2025 and are expected to remain volatile.
For Q2/2025, STA reported sales and service revenue of THB 30,841.4 million, with total natural rubber sales volume of 397,461 tons — up 0.1% QoQ and 20.7% YoY. Revenue from the glove business totaled THB 5,970.1 million, down 8.4% QoQ but up 5.4% YoY, with glove sales volume of 9,091 million pieces, down slightly by 1.1% QoQ due to some customers delaying orders while awaiting clarity on U.S. tariffs. Nonetheless, glove sales rose 7.9% YoY on the back of recovering global demand.
For the first half of 2025, the Company recorded sales and service revenue of THB 65,226.5 million, with total natural rubber sales volume of 794,416 tons, up 31.8% and 22.7% YoY respectively. EBITDA stood at THB 647.6 million. Revenue from glove sales reached THB 12,490.2 million, up 7.0% YoY due to higher average selling prices, despite a slight decline of 1.3% in sales volume to 18,282 million pieces, which was impacted by U.S. tariff concerns but offset by price increases.
However, natural rubber selling prices came under pressure from the reciprocal tariff measures imposed by President Trump, leading to a decline in average selling prices in Q2/2025 compared to the previous quarter. This negatively impacted margins, resulting in net losses of THB 786.8 million in Q2/2025 and THB 98.1 million for the first half of 2025.