Tay Ninh Rubber (TRC) reported significant profits in Q3 2024, but short-term debt also increased by 59%.

Big profits in Q3 thanks to rising rubber prices.

In Q3 2024, Tay Ninh Rubber Joint Stock Company (Code: TRC) recorded a 29% increase in revenue compared to the same period last year, reaching VND 221 billion. Of this, the cost of goods sold remained similar to the same period last year, accounting for VND 151 billion, resulting in a 2.3-fold increase in gross profit, reaching VND 69 billion.

Financial income increased sixfold to VND 3.9 billion, while financial expenses decreased by 36% to VND 2.4 billion, resulting in a relatively good financial profit. However, investments in joint ventures and associated companies resulted in a loss of VND 4 billion, a 60% higher loss compared to the same period last year.

Tay Ninh Rubber (TRC) reports strong Q3 profits, but short-term debt also increased by 59% (Photo: Provided)

Selling expenses and administrative expenses amounted to VND 2.7 billion and VND 11 billion respectively. As a result, after-tax profit reached VND 73 billion, nearly five times higher than the same period last year.

Cumulative revenue for the first six months of the year for Tay Ninh rubber reached VND 457 billion, a 32% increase. After-tax profit reached VND 101 billion, a fourfold increase compared to the first nine months of 2023.

Explaining the surge in business results, Tay Ninh Rubber stated that the sharp increase in rubber latex prices in Q3/2024 was the main reason. This factor helped boost profits for both the parent company and its subsidiary, Tay Ninh Siem Reap PTC, compared to the same period last year. Thanks to this result, Tay Ninh Rubber has exceeded its full-year profit target by 44%.

Operating primarily from equity, short-term debt increased by 59%.

As of the end of Q3/2024, Tay Ninh Rubber's total assets reached VND 2,085 billion, an increase of nearly VND 100 billion compared to the beginning of the year. Cash and cash equivalents doubled compared to the beginning of the year, amounting to VND 203 billion.

Notably, the majority of the company's assets are in the form of long-term assets, totaling VND 1,585 billion. Of this, VND 947 billion is fixed assets, with accumulated depreciation of VND 405 billion, equivalent to nearly one-third of the fixed asset value.

In addition, the company also holds VND 484 billion in unfinished construction costs. Along with that is a long-term financial investment of VND 152 billion. This represents capital invested in other entities and companies.

Regarding the capital structure, liabilities account for only 17.6%, indicating that TRC operates primarily on equity capital. However, short-term debt is experiencing significant fluctuations compared to the beginning of the period, reaching VND 282 billion. Compared to the beginning of the period, short-term debt has increased by 59%. The increase mainly comes from short-term advances from customers.

Equity capital amounts to VND 1,716 billion, with undistributed after-tax profits accounting for VND 101 billion.

Source: https://www.congluan.vn/cao-su-tay-ninh-trc-lai-lon-trong-quy-3-2024-no-ngan-han-cung-tang-59-post316816.html