Sri Trang Gloves (STGT) Q3 2025 Financial Results: Sales Volume Recovery, Net Loss, Dividend Payments, and Sustainability Initiatives

Sri Trang Gloves (Thailand) Public Company Limited (STGT): Q3 2025 Financial Analysis

Sri Trang Gloves (Thailand) Public Company Limited (STGT), one of the world’s largest producers of examination gloves, reported its financial results for the third quarter ended September 30, 2025. The company’s performance reflects both operational recovery and industry challenges, notably intense competition and currency fluctuations. Below, we provide a detailed analysis of the key financial metrics, business developments, and outlook based strictly on the latest disclosures.

Key Financial Metrics

Metric	Q3 2025 (Current)	Q2 2025 (Previous)	Q3 2024 (Year Ago)	YoY Change	QoQ Change
Sales Volume (million pcs.)	10,061.3	9,091.1	9,593.0	+4.9%	+10.7%
Sales Revenue (THB million)	6,079.5	5,997.2	6,443.2	-5.6%	+1.4%
Gross Profit (THB million)	436.1	518.0	330.4	+32.0%	-15.8%
Net Profit (THB million)	-106.0	77.1	-86.5	+22.6%	-237.6%
EBITDA (THB million)	566.5	752.8	512.8	+10.5%	-24.8%
Gross Profit Margin (%)	7.2%	8.6%	5.1%	+2.0pp	-1.4pp
EBITDA Margin (%)	9.3%	12.6%	8.0%	+1.4pp	-3.3pp
Net Profit Margin (%)	-1.7%	1.3%	-1.3%	-0.4pp	-3.0pp
Current Ratio	2.40	2.07	2.00	+20.3%	+16.4%
Net Interest-Bearing Debt/Equity	0.03	0.06	0.05	-33.9%	-50.3%

Historical Performance Trends

Sales volume is rebounding, with a 10.7% QoQ and 4.9% YoY increase, driven by resumed purchase orders and recovering global demand.
Revenue increased slightly QoQ (+1.4%) but fell YoY (-5.6%), reflecting lower average selling prices (ASP) due to intense competition and Thai baht appreciation.
Gross profit improved YoY (+32.0%) due to lower latex costs and higher production efficiency but declined QoQ (-15.8%) as ASP fell faster than cost reductions.
Net profit turned negative again, with a loss of THB 106 million in Q3 2025, compared to a profit in Q2 2025 and a smaller loss in Q3 2024.
EBITDA margin, while higher YoY, was pressured QoQ by lower ASP and currency effects.

Exceptional Expenses and Asset Impairment

SG&A increased substantially (+17.6% QoQ, +32.3% YoY), mainly due to a one-time impairment allowance for buildings and machinery that have ceased operations. Excluding this, SG&A would have been THB 460.1 million.
Finance costs dropped YoY and QoQ due to loan repayments and lower interest expenses.
No revaluation delays are mentioned, but asset impairments were recognized promptly.

Cash Flow and Financial Position

Net cash at the end of Q3 2025 was THB 3,010.5 million, down THB 894.9 million from the previous quarter, primarily due to significant repayments of borrowings, dividend payments, and investment in fixed deposits and assets.
The current ratio improved to 2.40, indicating strong liquidity. Net interest-bearing debt to equity fell to 0.03, reflecting sound balance sheet management.

Corporate Actions and Strategic Initiatives

Share repurchases of THB 71.8 million occurred in the quarter.
STGT secured a THB 2 billion Sustainability-Linked Loan with Krungsri, targeting reductions in greenhouse gas emissions and landfill waste per unit of production by 2030.
Plans include replacing impaired machinery with new technologies, further automating production, and deploying AI for efficiency.
No dividend information was disclosed for the quarter in the report.

ESG Developments

STGT (Trang Branch) was certified as a Climate Action Leading Organization (CALO) and committed to Net Zero GHG Emissions.
Won the CSR Award 2025 for corporate social responsibility from the Ministry of Social Development and Human Security.
Sri Trang Group received the ESG DNA Certificate, underlining commitment to integrating ESG principles company-wide.

Business Outlook and Risks

Management is focused on improving operational efficiency, expanding specialty glove offerings, and growing the customer base from 175 to over 190 countries.
Key risks include intense industry competition, volatile raw material prices, and currency fluctuations.
No mention of legal or regulatory disputes, natural disasters, or other exceptional external events during the quarter.

Conclusion and Investment Recommendation

STGT’s Q3 2025 results show operational recovery in sales volume and efficiency but continued margin pressure from competition and currency effects. Asset impairments and exceptional SG&A costs weighed on net profit. The company’s liquidity and balance sheet remain strong, supported by prudent debt reduction and cash management. Strategic investment in sustainable operations and technology positions STGT well for long-term growth, but near-term profitability is challenged by the normalization of industry conditions.

Recommendation for Current Holders

If you are currently holding STGT stock, consider maintaining your position. The company’s strong liquidity, low leverage, and focus on operational improvement and sustainability suggest it is well equipped to navigate current industry headwinds. However, watch for improvements in ASP and margin recovery as key signals for a stronger rebound.

Recommendation for Potential Investors

If you do not currently hold STGT, it may be prudent to wait for signs of sustained margin improvement and clearer positive trends in net profitability before initiating a position. The company is fundamentally sound but faces industry normalization and competitive pressures that could prolong margin weakness.

Disclaimer: This analysis is based solely on reported financials and does not constitute investment advice. Investors should consider their own risk tolerance and consult with a professional before making investment decisions.