Sri Trang returns to profit in second quarter as rubber prices rise

Bangkok – Sri Trang Group has returned to profitability in the second quarter of 2026, reporting net profit attributable to shareholders of THB895 million (€23.4 million), compared with a net loss of THB786.8 million a year earlier.

For the first half, net profit reached THB1.54 billion, reversing a THB98 million loss in the first six months of 2025, Sri Trang reported 14 Aug.

Second quarter revenue increased 0.5% year-on-year to THB31 while first-half sales fell 11.3% year-on-year to THB57.8 billion, reflecting lower sales volumes in both businesses.

Natural rubber

Over the quarter ended 30 June, natural rubber (NR) revenue increased marginally, 0.1% year-on-year, to THB25 billion, accounting for 80.3% of group revenue.

The increase came despite a 10.9% year-on-year decline in sales volume to 354,210 tonnes, as the average selling price increased 12.3%. Sales volume was, however, 3.6% higher than in the first quarter.

The Thai group said the higher ASP reflected the upward trend in global NR prices, with SICOM TSR20 reaching approximately US$2.34/kg in June, its highest level in more than 10 years.

NR profitability also improved significantly, with gross profit margin reaching 9.3%, the highest level in seven quarters.

Sri Trang did not provide a breakdown of earnings for segments but attributed the NR improvement to higher ASP and “accelerated customer restocking during the quarter.”

The group noted that most buyers slowed purchases from March to early May due to tensions around the Strait of Hormuz, which pushed up oil, related product and NR prices.

“Many buyers postponed their purchases while waiting for greater clarity on price direction,” while some customers were unable to buy immediately because prices exceeded their budget levels, Sri Trang said.

Customer inventories subsequently declined, “prompting accelerated restocking during May-June to replenish inventory levels”.

This supported TSR20 prices at around US$2.20-2.30/kg during the middle to latter part of the quarter.

For the first half, NR revenue fell 13.1% to THB42.72 billion as demand remained ‘cautious’, with annual NR demand growth estimated at around 1-2%.

Gloves

Glove revenue increased 2.2% year-on-year to THB6.10 billion the second quarter, accounting for 19.7% of group revenue.

The increase came despite a 5.9% year-on-year decline in sales volume to 8.55 billion pieces.

The ASP, said Sri Trang, increased 13.8% in US-dollar terms to US$22.36 per 1,000 pieces while in baht terms, it increased 12.0%.

Sri Trang said it was able to adjust selling prices to “pass through higher costs to customers”, including nitrile latex, NR latex, freight and other costs, following a surge in global oil and petrochemical prices linked to the conflict in the Middle East.

Glove profitability also reached a multi-year high, with gross profit margin of 17.0% in the second quarter, which Sri Trang said was ‘the highest in four years.’

The group attributed the gains to its ability to adjust selling prices to pass through higher costs.

Sales volume declined both year-on-year and sequentially as some customers delayed orders while waiting for greater clarity on price direction.

First-half glove revenue fell 7.3% to THB11.58 billion.

Profit recovery

Group-wide, Sri Trang posted a substantial increase in group profitability.

Second quarter earnings (EBITDA) increased 339.5% to THB2.85 billion while EBIT rose to THB1.66 billion from a loss of THB508.5 million a year earlier.

For the first half, earnings increased 72.8% to THB5.22 billion and EBIT rose 289.2% to THB2.86 billion.

Looking ahead, the group expects rubber prices to soften after most buyers completed their restocking and purchasing activity returned towards normal levels.

It also expects higher rubber output in August, provided rainfall subsides.