Tay Ninh Rubber (TRC) has big profits in Q3/2024, short-term debt also increased by 59%

Big profit in Q3 thanks to rising rubber prices

In the third quarter of 2024, Tay Ninh Rubber Joint Stock Company (Code: TRC) recorded a 29% increase in revenue over the same period, reaching VND 221 billion. Of which, the cost of goods sold was equivalent to the same period, accounting for VND 151 billion, causing gross profit to increase 2.3 times, reaching VND 69 billion.

Financial revenue increased 6 times, reaching 3.9 billion VND while financial expenses decreased 36% to 2.4 billion VND, helping to bring a relatively good source of financial profit. However, investment activities in joint ventures and associates lost 4 billion VND, this loss was 60% higher than the same period.

Tay Ninh Rubber (TRC)'s third quarter profit increased sharply, short-term debt also increased by 59% (Photo TL)

Selling expenses and administrative expenses accounted for VND2.7 billion and VND11 billion, respectively. As a result, profit after tax reached VND73 billion, nearly 5 times higher than the same period.

Tay Ninh Rubber's accumulated revenue in the first 6 months of the year reached 457 billion VND, up 32%. Profit after tax reached 101 billion VND, up 4 times compared to the first 9 months of 2023.

Explaining the sudden increase in business results, Tay Ninh Rubber said that the main reason for the sharp increase in rubber latex prices in the third quarter of 2024 was the sharp increase in the selling price. This factor helped the profits of both the parent company and its subsidiary, Tay Ninh Siem Reap PTCS, increase compared to the same period last year. Thanks to this result, Tay Ninh Rubber exceeded the annual profit target by 44%.

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

As of the end of the third quarter of 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, accounting for VND 203 billion.

Notably, the majority of the company's assets are in the form of long-term assets, accounting for VND1,585 billion. Of which, VND947 billion are fixed assets, with accumulated depreciation of VND405 billion, equivalent to nearly 1/3 of the value of fixed assets.

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

Regarding capital structure, payables account for only 17.6%, showing that TRC operates mainly on equity. However, short-term debt is fluctuating strongly compared to the beginning of the period, accounting for VND 282 billion. Compared to the beginning of the period, short-term debt increased by 59%. The increase mainly comes from short-term prepayments from buyers.

Equity accounted for VND 1,716 billion with undistributed profit after tax 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