Rubber industry sees strong profit growth in 2021

VIETNAM, February 24 – Workers collecting latex from a rubber plantation in Gia Lai. Photo VNA/VNS

HÀ NỘI — Rubber is one of the industries showing good performance despite many sectors struggling due to the COVID-19 pandemic.

In its fourth quarter financial statements, Vietnam Rubber Group (GVR), one of the leading rubber companies in Việt Nam, said its net sales increased 6.6% year-on-year to 9, 6 trillion VNĐ ($4.2 million). ). Among these, revenue from latex production and trade still plays a key role, with a gain of almost 19% to 7.46 trillion NV.

In addition, the wood processing segment also brought in more than VNĐ1 trillion in revenue.

While other business segments recorded growth, real estate and infrastructure activities recorded a decline of 47% to VNĐ183 billion.

However, as there was no longer any profit from the divestiture of member companies and the liquidation of rubber plantations, its after-tax profit in the fourth quarter of 2021 decreased by 44% to nearly VNĐ1.8 trillion.

For 2021, the company’s net revenue reached VNĐ26.35 trillion, up nearly 25% from 2020. It translated into a 10% gain in profit after tax to 5 600 billion VNĐ, completing and exceeding 23% of the plan. .

Even though Vietnam Rubber Group had the highest profit last year, Đổng Phú Rubber JSC (DPR) was the fastest growing in terms of profit.

Despite a 3.5% decline in revenue over the same period of 2020, the company’s after-tax profit was still four times higher at VNĐ330 billion thanks to other income totaling over VNĐ229 billion.

Year-to-date in 2021, Đồng Phú Rubber’s net revenue reached VNĐ1.2 trillion, up 6.8% year-on-year, with latex business revenue at VNĐ860 billion, which represents approximately 71% of its total turnover.

Revenue from the liquidation of rubber trees reached VNĐ 122 billion.

As a result, its after-tax profit jumped 132% to VNĐ491 billion. The company’s earnings per share (EPS) was also in the lead with 10,752 VNĐ.

Tabiruco (RTB) is also a company that is experiencing strong growth in profits.

In 2021, its net revenue reached VNĐ889.3 billion, up 32.5% from 2020. With pre-tax profit three times higher than the annual target, the company’s after-tax profit doubled to 379.6 billion VNĐ.

Similarly, Baruco (BRR) recorded a 27.2% increase in net revenue to VNĐ500 billion, resulting in a 34.2% increase in profit after tax to VNĐ146 billion. With the commercial results, Baruco exceeds 20.5% of the profit target set for the full year.

Victory is not for everyone

On the contrary, Phước Hoà Rubber JSC (PHR), also one of the main producers in the sector, recorded an 11% drop in net turnover in the last quarter of 2021 to almost VNĐ 663 billion, with a profit after-tax down 40 percent. hundred to 237.5 billion VVĐ.

For the full year, its net sales increased by more than 19% to VNĐ 1.9 trillion.

However, in 2021, as there was no other income, its profit after tax decreased slightly by 48.6% year-on-year to VNĐ578 billion.

Another name that had a huge impact on investors last year was Quảng Nam Rubber.

Four years ago, in 2017, the company suddenly recorded a loss of almost 1.2 trillion VNĐ, with a turnover of only a few tens of billions of VND.

Since then, it has generated almost no income, or only a small amount below 10 billion VNĐ.

In 2020 and 2021, Quảng Nam Rubber failed to generate revenue, losing VNĐ65 billion and VNĐ50 billion respectively.

Therefore, cumulatively through December 31, 2021, it lost VNĐ1.36 trillion, with equity reduced to VNĐ167 billion.

Last year, the company also experienced many ups and downs by changing its name and business lines twice.

Of which, in May 2021, the company changed its name from Quảng Nam Rubber to Việt Trung Viet Investment and Development JSC, and transformed its core business of rubber plantation and trading into real estate.

Then, at the end of 2021, the company changed its name again to Tây Bà Nà Group JSC, but kept its stock symbol VHG.

Positive outlook in 2022

Vietnam Rubber Group said the country’s rubber industry will benefit from both export volume and value due to tight global supply, especially in Southeast Asia, as the region is badly affected by weather conditions, leading to a drop in the production of natural latex.

Therefore, the price of latex should continue to rise sharply.

A report from the Import-Export Department of the Ministry of Industry and Trade showed that the price of rubber in the country rose slightly last month. VNS