STA grows spectacularly with prices of natural rubber on the rise Q1/2021 net profit reached a new high of 5,958.5 million baht, up 597.6% from last year Board approves interim dividend of 1.00 baht per share
Sri Trang Agro-Industry Public Company Limited or STA posts a net profit for Q1/2021 with a new high of 5,958.5 million baht, up 597.6% from the same period last year, and revenue from sales and services at 31,579.5 million baht, up 80.6%, as a result of increased sales and rising prices of latex gloves and natural rubber in the world market as the recovery of the automobile industry set in. The Company Board approves a dividend of 1.00 baht per share. The second quarter expects to see prices continue to climb as the world economy rebounds and the auto industry recovers even more.
Mr. Veerasith Sinchareonkul, Executive Director of Sri Trang Agro-Industry Pcl. or STA, the world's leading producer and distributor of natural rubber products, reports that the company was able to achieve the level of growth as planned for Q1/2021, earning a record net profit of 5,958.5 million baht, up 597.6% from the same period of last year while earnings from sales and services came in at 31,579.5 million baht, up 80.6% from last year.
Mr. Veerasith says he is confident that investors would enjoy similar returns throughout 2021, explaining that the outstanding Q1 performance resulted from increased sales and rising natural rubber prices in the world market as a result of the recovery of the automobile industry and of the global economy in general, which has a positive impact on the demand for natural rubber for tire production.
Meanwhile, the company also has benefited from the revenue recognition of Sri Trang Gloves (Thailand) Pcl., which has seen the average price of gloves during the first quarter rise by 20% over the previous year and demand on the upswing due to the unabated spread of Covid-19 infections in Thailand and several other countries while the administration of vaccines requires a constant supply of gloves.
As a result of the positive performance, the company's Board of Directors on April 12, 2021, has approved a dividend for Q1/2021 of 1.00 baht per share for a total of 1,538 million baht. The shares will be declared XD on May 25 and dividend paid to the shareholders on June 11, 2021.
Meanwhile, the outlook for natural rubber in Q2/2021 is expected to continue to grow further with the global economy gradually recovering and the automobile industry becoming healthy again, which will favorably affect rubber prices and global demand. The company is laying down plans for a sustained growth and for the revenue to reach 100 billion baht this year, increasing by more than 30% over 2020 with a revenue of 75.479 billion baht.