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's after-tax profit was nearly 1,000 billion VND.

Vietnam Rubber Industry Group's (stock code: GVR) second quarter 2024 profit increased by nearly 39% year-on-year to VND994 billion thanks to increased rubber latex prices.

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

Gross profit for the period reached VND1,172 billion, up 21% year-on-year, equivalent to a gross profit margin of 25.3%. Financial expenses decreased from VND157 billion to VND115 billion, and selling expenses decreased from VND111 billion to VND103 billion. In contrast, administrative expenses increased by 7%, from VND397 billion to VND415 billion in this quarter.

Financial revenue decreased slightly compared to the same period, but in return, the Group recorded other income of up to VND 417 billion, while last year it was only about VND 350 billion. Thanks to that, after deducting all expenses, the Group reported a profit after tax of VND 994 billion, an increase of 38.6% compared to the same period in 2023.

In a written explanation sent to the Ho Chi Minh City Stock Exchange , Mr. Le Thanh Hung - General Director of the Vietnam Rubber Industry Group - said that the sharp increase in profit was mainly due to the higher selling price of rubber latex compared to the same period last year. In addition, the business results of wood processing activities increased, income from compensation for land acquisition and return of land to localities also improved, so profits increased.

In the first half of the year, the Group had a net revenue of VND9,207 billion, an increase of 11% over the same period. Gross profit reached more than VND2,248 billion, while in the same period it was only approximately VND1,912 billion. Gross profit margin in the first half of the year reached 24.4%, an increase of 1.4 percentage points compared to the first 6 months of 2023.

After deducting expenses, the group reported pre-tax profit of VND1,962 billion and after-tax profit of VND1,644 billion, up 7.2% and 12.6% respectively over the same period last year.

According to the plan approved at the extraordinary meeting at the end of March, the Group set a target of recording revenue and income of VND24,999 billion this year. Pre-tax profit was VND4,104 billion and after-tax profit was VND3,437 billion. Thus, after half a year, the Group has completed 36.8% of the revenue target, with pre-tax and after-tax profits both reaching more than 47.8%.

The Board of Directors said that the business target is built in a cautious direction because this year's business environment is forecast to be more difficult than favorable.

Specifically, the selling price of rubber latex remains low and unpredictable; wood and rubber wood products continue to face difficulties due to the impact of the domestic real estate market and the economic recession of major countries, so demand and selling prices tend to continue to decrease and there are no positive signs in the short term. Solutions to increase other sources of revenue to compensate for production and business activities (divestment, returning land to localities) are forecasted to face many difficulties due to obstacles in mechanisms and policies.

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

As of the end of the second quarter, the Group had total consolidated assets of VND 76,117 billion, down approximately VND 1,945 billion compared to the beginning of the period. Long-term liabilities accounted for more than 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 reaches VND55,599 billion, an increase of more than VND622 billion compared to the beginning of the year. Undistributed profit after tax currently reaches VND5,801 billion.

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

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