Sri Trang Gloves Thailand Plc (STGT) saw earnings grow 165% year-on-year in the second quarter of this year to 13 billion baht with profits surging 591% to 7.28 billion baht, driven by massive global demand for medical gloves amid the pandemic.
Jarinya Jirojkul, chief executive of STGT, said the company has been able to achieve steady growth in the quarter, despite the temporary closure of its plants in Trang and Surat Thani due to Covid-19 infections among some workers.
The company plans to increase production in the second half of the year as the Surat Thani 2 and 3 plants resume operations with two others in Trang and Songkhla soon to follow.
As a result of the company's positive performance, the board of directors approved an interim dividend of 1.25 baht per share and an XD declaration on Aug 23.
The company will pay the dividend on Sept 8. Another dividend of not less than 1.25 baht per share will be paid in December following the approval of third quarter financial results.
In the first half of this year, total revenue reached 28.4 billion baht, an increase of 227% year-on-year, and a net profit of 17.3 billion baht, up 1,068.7% from last year.
Ms Jarinya said the outlook for the second half of the year is expected to improve due to increased production at the Surat Thani 3 plant, which came online at the end of July. Meanwhile, a plant in the Sadao district of Songkhla and another in Trang are expected to begin operations in the second half of the year.
Latex glove production is expected to increase to 36 billion pieces a year from 33 billion pieces a year previously.
