Profit in 5 months reached 1,108 billion VND, dividend payment of 1,200 billion VND in 2023

VRG Shareholders' Meeting: 5-month profit reached 1,108 billion VND, dividend payment of 1,200 billion VND in 2023

In the first 5 months of 2024, VRG recorded revenue of VND 7,119 billion, reaching 28.5% of the plan, profit of VND 1,108 billion, reaching 32.2% of the plan.

The information was given by Mr. Tran Cong Kha, Chairman of the Board of Directors of Vietnam Rubber Industry Group - Joint Stock Company (VRG; HoSE: GVR) at the 2024 annual shareholders' meeting, held on June 17.

According to Mr. Kha, 2024 is forecasted to continue to face many difficulties and challenges both domestically and internationally. Unfavorable changes in weather, interest rates and high input cost factors while the market prices of rubber and wood have not changed positively will significantly affect the production and business activities of the Group and its member units.

Mr. Tran Cong Kha, Chairman of VRG Board of Directors (standing in the middle) informed at the Congress.

This year, VRG sets a target of revenue and other income of VND 24,999 billion (equal to 101.2% compared to 2023), after-tax profit of VND 3,437 billion (equal to 102% compared to 2023).

To achieve the above results, in the field of rubber planting, exploitation, processing and consumption, the Group said it will strengthen technical management and exploitation to ensure that the plan for 2024 is achieved and exceeded. At the same time, it will monitor developments in the rubber market to manage product prices appropriately and promptly to bring about efficiency and manage inventory at an appropriate level.

Each year, VRG produces an average of 500,000 tons of rubber, accounting for about 30% of the country's rubber area and output. The Group currently has 59 factories and latex processing workshops with a total designed capacity of 636,400 tons. Not only is it capable of processing all the latex exploited, the factories also process and process an average of more than 80,000 tons/year for smallholder rubber plantations.

“Up to now, the Group's output has reached 150,000 tons, 29% of the plan with an average selling price of VND38.4 million/ton. This year's selling price is more favorable, VND6 million/ton higher than the same period last year, which is a good sign. Hopefully, the selling price will maintain growth in the last months of the year,” Mr. Kha added.

Regarding the wood processing sector, the Group said it will proactively review the operations of wood companies to find solutions to remove difficulties and obstacles, ensuring stable and developing production and business activities in the wood sector in the coming time. Ensuring the ability to supply rubber materials and rubber wood for the rubber industry, wood processing industry domestically and for export.

Currently, VRG has the strength and large land resources to develop raw material forestation. With an average liquidated rubber area of ​​10,000 - 12,000 ha/year, ensuring the supply of raw materials for processing and manufacturing wood products.

In particular, in the field of industrial park infrastructure investment, VRG currently invests in 11 companies operating in the field of industrial park infrastructure (Bac Dong Phu, Dau Giay, Nam Tan Uyen, An Dien, Tan Binh, Long Khanh, Binh Long, Cong Hoa, Thong Nhat, VRG Long Thanh, Nam Pleiku).

With 16 projects, total area of ​​over 6,566 hectares, located in the following provinces/cities: Ho Chi Minh City, Dong Nai, Binh Duong , Binh Phuoc, Dong Nai, Tay Ninh, Gia Lai. In recent years, industrial parks have distributed dividends at an average of over 40%, some industrial parks at over 60%; the average profit margin on charter capital is over 60%.

In the period of 2021 - 2025, in addition to focusing on implementing legal procedures for projects that have been approved for investment policy and are applying for investment policy approval with an area of ​​2,921 hectares, VRG will continue to work with local authorities and ministries to lay the foundation for the development of an additional 16,592 hectares.

Of which, the Group is the investor of 10,977 hectares in Tay Ninh, Binh Duong, Dong Nai and Ba Ria - Vung Tau provinces, and the units invest 5,615 hectares. The total area for developing industrial parks and industrial clusters for the vision of 2025 is expected to be 23,444 hectares.

Providing more information about the investment situation of industrial park projects on rubber land, Mr. Kha said that based on the local socio-economic development plan approved by the Prime Minister, VRG is reporting and submitting to competent authorities to request priority for the Group and its member units to be investors in industrial parks and industrial clusters on rubber land managed by the Group.

"The specific area will be decided by the competent authorities," said Mr. Kha.

At the meeting, shareholders approved the separate financial statements and consolidated financial statements, and the 2023 profit distribution plan. Accordingly, the expected dividend rate is 3%/charter capital, equivalent to VND 1,200 billion.

The Congress elected two additional members to the Board of Directors for the 2021-2026 term, including: Mr. Do Huu Phuoc, Deputy General Director (holding the position of Board of Directors member) and Mr. Nguyen Dong Phong, Chairman of the Board of Directors of Ho Chi Minh City University of Economics (holding the position of independent Board of Directors member).

At the same time, the Congress also approved the dismissal of Mr. Do Khac Thang from the position of Head of the Group's Supervisory Board for the 2021 - 2026 term, and elected Mr. Pham Van Hoi Em, Chief Accountant and Head of the Finance and Accounting Department, to hold the position of Head of the Group's Supervisory Board.

Source: https://baodautu.vn/dhdcd-vrg-loi-nhuan-5-thang-dat-1108-ty-dong-chia-co-tuc-1200-ty-dong-nam-2023-d217834.html