Rubber scraping in Duc Linh district, Binh Thuan province, south-central Vietnam. Photo courtesy of Binh Thuan newspaper.
Vietnam Rubber Group, of which the state holds a 96.77% stake, recorded after-tax profit of VND755.7 billion ($32.2 million) in the quarter, down 42% year-on-year.
The group, listed on the Ho Chi Minh Stock Exchange as GVR, earned net revenue of VND4.14 trillion ($176.2 million), down 15%.
Vietnam Rubber Group saw a loss of VND11.14 billion ($474,700) from its joint ventures and associates in Q1, while in the same period last year it made profit of VND52.81 billion ($2.25 million).
According to the company, economic difficulties caused the selling price of main rubber products to decrease over the same period last year, while the prices of many input materials increased sharply, significantly bringing down gross profit.
As of March 31, the group’s total assets had reached VND77.04 trillion ($3.28 billion), down 2% from the beginning of the year, of which cash and cash equivalents hit VND3.58 trillion ($152.36 million), down 18%.
The group expects a revenue of VND3.79 trillion ($161.57 million) in 2023, down 85% year-on-year, and after-tax profit of VND1.4 trillion ($59.44 million), down 71%.
GVR shares finished at VND16,300 ($0.69) at Tuesday’s close.
Meanwhile, Phuoc Hoa Rubber JSC posted net revenue of VND326 billion ($13.89 million) and after-tax profit of VND233 billion ($9.93 million), down 11% and down 22% respectively.
As of the end of Q1, the company’s total assets had stood at VND6.22 trillion ($265 million), down 2% compared to the beginning of the year, of which inventory was VND263 billion ($11.2 million), down 18%.
The company said that in Q1 it received less money from land compensation for the VSIP III Industrial Park project in Binh Duong province compared to last year.
Phuoc Hoa aims to achieve revenue of VND1.81 trillion ($77.2 million) this year, down 12%, and post-tax profit of VND487 billion ($20.74 million), down 47%.
Although it has reduced target figures for this year, PHR said that it is still difficult to complete the set plan due to market difficulties.
On the HoSE, the PHR share price stood at VND43,500 ($1.85) per unit at Tuesday’s close.
Dong Phu-Daknong Rubber JSC recorded after-tax profit of VND46.7 billion ($1.99 million), down 24% on net revenue of VND204 billion ($8.69 million), up 13%.
The company, listed on the unlisted public company market UPCoM as DPD, said that in Q1, sales volume and average selling price were both lower than in Q1/2022, causing its profit decrease.
As of the end of March, the company’s assets had hit VND4.19 trillion ($178.77 million), of which long-term assets were VND2.31 trillion ($98.44 million).
The DPD share price hit VND55,300 ($2.36) per unit at Tuesday’s close.
DakLak Rubber Investment JSC recorded net revenue of VND29 billion ($1.24 million), down 47%, and after-tax profit of VND13.4 billion ($571,307), down 39%.
As of March 31, 2023, the company’s total assets had stood at VND2.53 trillion ($108 million), of which cash and cash equivalents were VND325 billion ($13.85 million), down 20% compared to the beginning of the year.
The company is listed on the unlisted public company market UPCoM as DRG, which closed at VND7,800 ($0.33) on Tuesday.
The company said that the decrease in Q1 profit was due to lower selling prices at subsidiaries compared to the same period last year.
Statistics from the Ministry of Industry and Trade show that Vietnam exported about 396,000 tons of rubber latex in Q1, worth $552 million, down 2.6% in volume and 22.9% in value year-on-year. Rubber exports to major markets all decreased compared to the same period in 2022.
According to the Association of Natural Rubber Producing Countries, the natural rubber harvest in 2023 is forecast to reach over 14.69 million tons, while the global consumption is expected to be only nearly 14.74 million tons. Therefore, in 2023, the supply of rubber will exceed the demand, causing the rubber industry to fall into a new recession cycle.
Source: The Investor
