PSP reports more than threefold growth in Q1 2024 profits

P.S.P. Specialties Public Company Limited (PSP) has announced robust financial results for the first quarter of 2024 ending March 31, 2024, showcasing a remarkable 338% increase in net profit compared to the same period last year. The company’s net profit for Q1 2024 reached THB185 million (USD5 million), up from THB42.14 million (USD1 million) in Q1 2023. This substantial growth was driven by increased sales volume, higher average selling prices, and improved cost efficiencies.

Key financial highlights

• Total Revenue: Increased by 13.93% to THB3.504 billion (USD95.2 million)
• Gross Profit: Rose by 47.40% to THB418.27 million (USD11.3 million)
• Net Profit: Achieved a 338% increase to THB184.53 million (USD5 million)
• Gross Profit Margin: Improved from 9.23% to 11.94%.

The company attributed its impressive performance to strong demand for its lubricant products, grease, rubber processing oil, and transformer oil, both domestically and internationally. PSP’s customers launched promotional campaigns that boosted sales volume during the first quarter of 2024.

Company overview

PSP is a leading provider of lubricant products and solutions. Headquartered in Bangkok, Thailand, PSP specialises in the production and distribution of a wide range of lubricants, including automotive and industrial oils, greases, rubber processing oils, and transformer oils. The company has a strong market presence both locally and internationally, serving diverse industries with high-quality, innovative products. PSP’s commitment to research and development ensures that it stays at the forefront of the industry, meeting the evolving needs of its customers and maintaining a competitive edge.

As of March 31, 2024, PSP has reduced its debt compared to the previous year. Their debt-to-equity ratio is now 1.14, meaning they have less debt compared to their equity. This improvement is mainly because the company paid off some loans, which lowered the amount they owe. At the same time, the value of the company’s shares has increased. However, despite its strong Q1 financial results, PSP’s share price currently trades at THB5.55 (USD0.15), below its IPO price of THB6.20 (USD0.17).

PSP launched its initial public offering (IPO) and was officially listed on the Stock Exchange of Thailand (SET) on August 30, 2023. The company offered 350 million shares, raising approximately THB2.17 billion (USD59 million) in total. This IPO represented around 25% of the company’s total shares, bringing the total number of listed shares to 1.4 billion.

Future outlook

PSP remains optimistic about its future growth prospects. The company plans to use the funds raised from its IPO to improve production process efficiency, repay financial institutions’ loans, and serve as working capital for future expansion. PSP’s strategic focus includes increasing the proportion of sales from high-margin products and exploring new market opportunities, such as lubricants for electric vehicles and bio-transformer oils.

For more detailed financial information, please refer to the PSP Q1 2024 Financial Report.