Sri Trang Gloves (Thailand) Public Company Limited (STGT) broke its own record in 2020 with a net profit of 14,400.9 million baht, a huge jump of 2,246% from 2019, from total earnings of 30,405 million baht, which represents an increase of 154% from the previous year, as a result of worldwide demand that increased by over 20% and higher selling prices. The Company's Board of Directors has approved a dividend of 2 baht per share. Confidence is high that demands for latex gloves will continue its strong upward trajectory as vaccination against COVID-19 will push up sales.
Ms. Jarinya Jirojkul, Chief Executive Officer of STGT, a major global producer of latex and nitrile gloves, reported that the Company earned the highest revenue and profit in 2020 since its founding. Net profit was 14,401 million baht, an increase of 2,246% compared with 614 million baht in 2019. Total revenue reached 30,405 million baht, growing by 154% compared with 11.994 million baht in 2019.
STGT's performance in 2020 was impressive in every quarter, especially in the fourth quarter when the company earned 8,520 million baht in net profit, an increase of 4,602% compared to 181 million baht in the fourth quarter of 2019 before. Total revenue, meanwhile, stood at 13,646 million baht, increasing by 335% compared to 3,138 million baht in the same period of 2019.
The company's stellar performance in 2020 stemmed from a strong growth in the use of latex and nitrile gloves amounting to 360 billion pieces worldwide or an increase of over than 20%, with demand coming from various industries in addition to the medical sector. Shortages in many locations around the world also pushed up prices.
Most recently, the STGT Board of Directors on February 16, 2021, approved a dividend of 2 baht per share for 2020. The board also declared XD on 12 April 2021 and dividend payment on 28 April 2021. Combined with the interim dividend of 0.625 baht per share from profits covering the period from January 1 to September 30 of 2020, the total dividend payout for 2020 will be 2.625 baht per share.
The STGT CEO said further that worldwide demand in 2021 for latex and nitrile gloves are expected to grow by 20% over the past year's demand. While COVID-19 vaccines have been rolled out to people in many countries, new infections continue to be reported in large numbers. As a result, attention to health and hygiene has become the "New Normal", and gloves will continue to be in demand by the medical sector as well as other industries and new users.
Considering the aforementioned factors, STGT has planned to achieve its sales volume growth to 32 Billion pieces or 14% in 2021. The company currently has received advance orders for latex gloves for 13 months and for nitrile gloves for 30 months. There have so far been no signs of order cancellations.
In the meantime, the Company is going ahead with its plan to start production at its new plants, with new capacity starting to come out in the first quarter of this year. The expansion plan will see production capacity increase to 50,000 million pieces by the end of 2023, from 33,000 million pieces currently.
Source: MT Multimedia Company