Sri Trang Agro reports $33.7m Q3 loss as demand softens
Sri Trang Agro-Industry PCL reported a net loss of $33.7 million in Q3, reversing a profit of $20.7 million a year earlier, due to weak global rubber demand and prices. The loss widened 7% QoQ, with a net margin of -3.9%. EBITDA fell 76% to $18 million, and gross margin dropped to 4%. Operating expenses decreased by 16% YoY, but lower sales volumes offset savings. Profitability is expected to remain under pressure into early 2026 due to uncertainties in US and EU regulations affecting demand.
Shareholder loss widened 7% QoQ on weaker rubber prices.
Sri Trang Agro-Industry PCL (STA) posted a net loss of $33.7m (THB841.9m) in the third quarter, reversing a $20.7m (THB517.3m) profit a year earlier as global rubber demand and selling prices remained weak.
The quarterly loss widened 7% quarter on quarter (QoQ), bringing the net margin to -3.9%, compared with -2.6% in Q2 2025. Profit attributable to shareholders declined 263% year on year (YoY), whilst EBITDA fell 76% to $18m (THB449.4m). Gross margin dropped to 4% from 10.4% a year earlier due to lower prices and higher production costs.
Operating expenses fell 16% YoY to $69m (THB1.7b), but cost savings were offset by lower rubber sales volumes and competition in gloves. Finance costs declined 28% YoY to S$13m (THB325m) after loan repayments, improving the net debt-to-equity ratio to 0.55×.
STA said profitability will likely remain under pressure through early 2026 as exporters await clarity on US Reciprocal Tariff policies and EU deforestation rules that continue to affect demand.
(1 THB = 0.040 SGD)
