Mr. Chuwit Jungtanasomboon, CEO of North East Rubber Public Company Limited (SET: NER), shared with Kaohoon that the company aims to achieve 10-15% revenue growth in 2025 compared to 2024, with a sales target of 500,000 tons.
To support this goal, NER plans to increase its production capacity to 560,000 tons, ensuring it can meet ongoing demand for both standard rubber products and those compliant with the EU Deforestation Regulation. The company remains committed to the principles of Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR).
For the 4Q24 and full-year performance, NER has scheduled February 19, 2025, as the date for the board of directors’ meeting to approve and announce the financial statements. It is estimated that rubber sales and sales volume will meet the set targets, with strong profitability driven by higher selling prices, effective cost management, and efficient purchasing practices.
Mr. Chuwit stated that NER is currently in the process of finalizing its 2024 financial statements, and the overall performance will be clearer upon announcement. Normally, the company reserves 2-3% of its orders, equivalent to approximately 10,000 tons, in the fourth quarter of each year to accommodate urgent orders during the Thai and Chinese New Year periods. These orders usually generate a high profit margin.
Therefore, NER is confident that its overall performance in 2024 will surpass the revenue of 25,000 million baht achieved in 2023. With a total revenue of 18,635 million baht recorded in the first nine months of 2024, the company is optimistic about reaching a sales volume of 440,000 tons by the year-end, in line with the upward trend in orders. Key positive factors driving this growth include higher rubber prices and strong pre-orders, which have already been secured well into 1Q25.
Regarding the establishment of a new subsidiary, NER-CI (fully owned by NER), in Côte d’Ivoire, also known as Ivory Coast in Africa, the company is currently in the process of requesting tax benefits from the country’s Board of Domestic Investment. Preliminary studies indicate that this approach is more cost-effective than constructing a third factory in Thailand. NER anticipates that the factory will be ready for production by the end of 1Q26.
