In the second quarter of 2024, Vietnam Rubber Industry Group's after-tax profit was nearly 1,000 billion VND.

In the second quarter of 2024, Vietnam Rubber Industry Group reported a net profit of nearly 1,000 billion VND.

Vietnam Rubber Industry Group (stock code: GVR) reported a nearly 39% year-on-year profit of 994 billion VND in the second quarter of 2024, thanks to higher rubber latex prices.

According to the consolidated financial report of Vietnam Rubber Industry Group (stock code: GVR), revenue in the second quarter of 2024 reached VND 4,622 billion, an increase of 8.2% compared to the same period last year. The group's main source of revenue still comes from the production and trading of rubber latex with VND 3,132 billion, equivalent to the same period. The remainder comes from other areas such as wood processing, real estate business, rubber product trading, and utilities.

Gross profit for this period reached VND 1,172 billion, a 21% increase compared to the same period last year, corresponding to a gross profit margin of 25.3%. Financial expenses decreased from VND 157 billion to VND 115 billion, and selling expenses decreased from VND 111 billion to VND 103 billion. Conversely, administrative expenses increased by 7%, from VND 397 billion to VND 415 billion this quarter.

Financial income decreased slightly compared to the same period last year, but the Group recorded other income of up to VND 417 billion, compared to only about VND 350 billion last year. As a result, after deducting all expenses, the Group reported a net profit of VND 994 billion, an increase of 38.6% compared to the same period in 2023.

In a written explanation submitted to the Ho Chi Minh City Stock Exchange , Mr. Le Thanh Hung, General Director of the Vietnam Rubber Industry Group, stated that the sharp increase in profits was mainly due to higher rubber latex prices compared to the same period last year. In addition, improved business results in wood processing, and better income from land compensation and land return to local authorities also contributed to the upward trend in profits.

For the first half of the year, the Group recorded net revenue of VND 9,207 billion, an 11% increase compared to the same period last year. Gross profit reached over VND 2,248 billion, while it was only approximately VND 1,912 billion in the same period last year. The gross profit margin for the first half of the year reached 24.4%, an increase of 1.4 percentage points compared to the first six months of 2023.

After deducting expenses, the group reported a pre-tax profit of VND 1,962 billion and an after- tax profit of VND 1,644 billion, representing increases of 7.2% and 12.6% respectively compared to the same period last year.

According to the plan approved at the extraordinary meeting at the end of March, the Group aims to achieve revenue and income of VND 24,999 billion this year. Pre-tax profit is VND 4,104 billion and after- tax profit is VND 3,437 billion. Thus, after half a year, the Group has completed 36.8% of its revenue target, and pre-tax and after-tax profits have both exceeded 47.8%.

The management stated that the business targets were set cautiously because this year's business environment is predicted to be more challenging than favorable.

Specifically, rubber latex prices remain low and unpredictable; rubber wood and wood products continue to face difficulties due to the impact of the domestic real estate market and the economic recession in major countries, leading to a continued downward trend in demand and prices with no positive signs in the short term. Solutions to increase other revenue sources to compensate for production and business activities (divestment, returning land to local authorities) are expected to face many difficulties due to obstacles in mechanisms and policies.

The Group also announced its restructuring plan until 2025. In this plan, by 2025, the Group aims for consolidated total revenue of VND 28,575 billion, with an average annual growth rate of approximately 5%, and consolidated pre-tax profit of VND 5,051 billion; cumulatively for the period 2021-2025, consolidated total revenue is estimated at VND 135,000 billion, and consolidated pre-tax profit is estimated at VND 25,075 billion.

As of the end of the second quarter, the Group's consolidated total assets amounted to VND 76,117 billion, a decrease of approximately VND 1,945 billion compared to the beginning of the period. Long-term liabilities accounted for over VND 52,656 billion in the Group's asset structure. Liabilities also decreased significantly compared to the beginning of the period, from VND 23,085 billion to VND 20,518 billion. Approximately VND 12,694 billion of the Group's liabilities were long-term liabilities.

The Group's equity currently stands at VND 55,599 billion, an increase of over VND 622 billion compared to the beginning of the year. Undistributed after-tax profit currently stands at VND 5,801 billion.

On the stock exchange, GVR shares are currently trading at 31,600 VND (compared to 20,950 VND at the beginning of the year).

Source: https://baodautu.vn/quy-ii2024-tap-doan-cong-nghiep-cao-su-viet-nam-lai-sau-thue-gan-1000-ty-dong-d221257.html