Sri Trang rebounds to profit in Q2 2026 as soaring rubber prices drive recovery

Thailand’s Sri Trang Group swung back into the black in the second quarter of 2026, posting a net profit of THB895 million (€23.4 million) versus a THB786.8 million loss in the same period a year earlier. For the first half of 2026, net profit totaled THB1.54 billion, reversing a THB98 million loss in the first six months of 2025, the company announced on 14 August. Second-quarter revenue edged up 0.5% year-on-year to THB31 billion, while first-half sales fell 11.3% to THB57.8 billion, reflecting lower volumes across both natural rubber and glove divisions. Natural rubber (NR) revenue rose 0.1% to THB25 billion in Q2, accounting for 80.3% of group revenue, despite a 10.9% drop in sales volume to 354,210 tonnes; the average selling price climbed 12.3%. Volume was still 3.6% higher than in Q1. Sri Trang attributed the price gain to a surge in global NR prices, with Singapore Commodity Exchange TSR20 rubber hitting roughly US$2.34/kg in June—its highest level in more than a decade. NR gross profit margin hit 9.3%, the best in seven quarters, driven by higher average selling prices and accelerated customer restocking. The group noted that buyers had deferred purchases from March to early May amid Strait of Hormuz tensions, which lifted oil and related product prices, including NR. Once inventories ran low, restocking in May–June pushed TSR20 prices to roughly US$2.20–2.30/kg. For the first half, NR revenue fell 13.1% to THB42.72 billion as demand remained cautious, with annual NR demand growth estimated at 1–2%. Glove revenue rose 2.2% to THB6.10 billion in Q2, making up 19.7% of group revenue, despite a 5.9% drop in volume to 8.55 billion pieces. Average selling price jumped 13.8% in US-dollar terms to US$22.36 per 1,000 pieces (12.0% in baht terms) as Sri Trang passed through higher costs for nitrile latex, NR latex, freight and other inputs tied to Middle East oil and petrochemical spikes. Glove gross profit margin reached 17.0% in Q2, the highest in four years, driven by price adjustments. First-half glove revenue declined 7.3% to THB11.58 billion. Group-wide, EBITDA surged 339.5% to THB2.85 billion in Q2, while EBIT rose to THB1.66 billion from a THB508.5 million loss a year earlier. For the first half, EBITDA climbed 72.8% to THB5.22 billion and EBIT jumped 289.2% to THB2.86 billion. Sri Trang expects rubber prices to ease once restocking is complete and purchasing normalizes, and it anticipates higher rubber output in August if rainfall subsides.