What's happening to the only publicly traded condom company?

Merufa Joint Stock Company (stock code: MRF) has just announced its audited financial report for 2024, recording net revenue of more than 139.6 billion VND, a slight increase over the same period.

However, due to operating close to cost price (VND 129.8 billion, up 13.8% over the previous year), after deducting other expenses such as interest, sales, and business management, Merufa's after-tax profit was negative VND 7.1 billion, while last year it made a profit of VND 5.4 billion, and in 2022 it made a profit of VND 12.6 billion, and in 2021 it made a profit of VND 23.7 billion.

According to Merufa, the reason for the sharp increase in cost of goods sold this year is because the company destroyed and liquidated damaged, low-quality, outdated and slow-moving inventory. In addition, the price of rubber - the main raw material - increased, increasing the cost of products.

Regarding Merufa, the key personnel of this enterprise have recently undergone strong fluctuations.

Specifically, Merufa recently announced that it had received a resignation letter from Ms. Truong Thi Thanh Thuy from the position of company controller for personal reasons. This letter will be submitted to the 2025 Annual General Meeting of Shareholders.

Previously, Merufa said it had received a resignation letter from Mr. Nguyen Kinh Thanh as general director and to quit the company. This letter will be submitted to the Board of Directors at the nearest meeting.

Some products of Merufa Joint Stock Company Source: Merufa

Mr. Nguyen Kinh Thanh has just been appointed as General Director of Merufa from October 4, 2024. Mr. Thanh said that the probationary period is 9 months, within the V term (2022 - 2026).

Mr. Thanh shared that during the process of taking over the job, because the job was new and had a lot of pressure, he tried to absorb, deploy and control all activities of the company, working with the executive board to resolve the backlog of goods, quality, production and business,... with the goal of bringing Merufa in line with the expectations assigned by the Board of Directors.

However, when reviewing his capacity after 4 months of taking on the role and duties of General Director, he felt that he could not complete the task with the current work pressure as well as the expectations of the Chairman of the Board of Directors in particular and the Board of Directors in general.

So he resigned as general director and left Merufa.

On the market, MRF shares are currently priced at VND 33,000/share, up 137% compared to the beginning of 2025.

Merufa Joint Stock Company, formerly a medical rubber factory, was established by the Ministry of Health in 1987 with the mission of producing condoms and other medical rubber products for the national economy.

In December 2002, Medical Rubber Factory was transformed into Merufa Joint Stock Company.

Merufa is the only condom manufacturer whose shares are listed on the stock exchange. In addition, the company also produces medical gloves, bottle stoppers, medical tubes, lubricants, ultrasound gels, etc.

Source: https://nld.com.vn/chuyen-gi-dang-xay-ra-voi-cong-ty-san-xuat-bao-cao-su-duy-nhat-tren-san-chung-khoan-196250402192517662.htm