STA continues good performance with net profit of 5,043.7 million baht, up by 361.2% YoY Approving interim dividend, uping sales target as rubber demand rises Entering digital age with ‘Sri Trang Friends' app to facilitate rubber purchases
Sri Trang Agro-Industry Public Company Limited or STA posts a good performance in profit for Q2/2021 with 5,043.7 million baht, up 361.2% from the same period last year, a result of the recovery of the auto industry that pushes the demand for tires to rise. A new goal now is set for natural rubber sales to increase 100,000 tons, increasing from 1.2 million tons to 1.3 million tons, and an approval given to an interim dividend of 1.25 baht per share with XD posted on August 23. The application SRI TRANG FRIENDS for rubber purchases from growers will advance the industry to an age of digitalization.
Mr. Veerasith Sinchareonkul, Executive Director of Sri Trang Agro-Industry Pcl. or STA, the world’s leading producer and distributor of integrated natural rubber products, reports that the company continues to perform outstandingly in Q2/2021, posting another record high in net profit of 5,043.7 million baht, an increase of 361.2% from the same period last year, and revenues from sales and services of 29,803.6 million baht, up 95.4% from last year, a clear indicator of the company’s strengths.
The 2nd-quarter growth stemmed from rising global demands for natural rubber, especially from the auto industry that has seen its growth stepping up in line with the economic recovery in the United States, Europe and China and pushing up auto tire production. Most of the world’s leading tire manufacturers acquire rubber from STA. At the same time, the on-going coronavirus infections in many countries worsened by new virus variants have intensified demands for latex gloves for anti-Covid care and vaccination campaigns.
As a result of its strong performance, the company’s Board of Directors has just approved an interim dividend for Q2/2021 of 1.25 baht per share, and is to declare XD on August 23. Dividend payments will be made to the shareholders on September 8, 2021.
The first six months of 2021 saw outstanding growth as well with net profit topping 11,002.2 million baht, an increase of 9,054.4 million baht over the same period the year before. Earnings from sales and services grew to 61,383.1 million baht, increasing by 87.5% from the same period last year, having benefited from healthy global demands for natural rubber which push up sales as well as prices of Technically Specified or Block Rubber (TSR) at the SICOM market with the average price during the first half of the year reaching 172.3 cents per kilogram.
The STA Executive Director says the strong performance has led the company to adjust upward its sales target for natural rubber in 2021 by adding 100,000 tons to 1.3 million tons from the earlier target of 1.2 million tons. It is clear that the natural rubber industry is on an upward swing as a result of the economy steadily recovering and the auto and latex glove industries growing strongly, impacting positively market demands and prices.
In another development, STA has digitalized its purchase platform of raw rubber by introducing an application called “Sri Trang Friends” to facilitate growers’ sales of raw rubber to the company. Growers simply state the prices and volume of rubber they wish to sell, the information upon which the company will make its decision. At the same time, growers can keep updated about the pricing trend as well as other related information. Currently, more than 7,000 members have registered with the app.