State-controlled giant Vietnam Rubber Group reports strong Q1 profit on high latex prices

Vietnam Rubber Group-JSC reported a net profit of VND1,184 billion ($45.5 million) in Q1/2025, 2.5 times higher than Q1/2024, which was largely driven by sustained high rubber latex prices amid rising global demand and tight supply.

The corporation, listed on the Ho Chi Minh Stock Exchange (HoSE) as GVR, generated VND5,676 billion ($218.26 million) in net revenue from sales and services in the period, up 24% year-on-year, according to its Q1 consolidated financial statement.

The rubber latex segment remained the group’s core business, contributing 76% of total revenue, or VND4,316 billion ($165.96), up 27% from Q1/2024. The gross profit margin for this segment improved to 28%, compared with 22% in the same period last year.

GVR attributed the favorable rubber prices to the recovery of the automobile industry in China and persistently high global crude oil prices.

The group also saw revenue from its real estate and infrastructure segment rise 75% to VND250 billion ($9.6 million).

Profit growth was further supported by reduced interest expenses and increased earnings from joint ventures and associates. Additionally, other income surged to VND278 billion ($10.69 million), four times higher than in Q1/2024, mainly due to proceeds from the liquidation of old and damaged rubber trees.

According to GVR’s 2024 annual report, the group has set a 2025 revenue target of nearly VND30,500 billion ($1.17 billion), up 6% year-over-year, and an after-tax profit target of VND4,780 billion ($183.8 million), down 1%.

As of end-Q1, the corporation had achieved 18.6% of the year's revenue goal and 28% of the profit target.

By the close of Q1, GVR’s total assets stood at approximately VND83,200 billion ($3.19 billion), largely unchanged from the beginning of the year.

Cash, cash equivalents, and bank deposits remained strong at VND19,600 billion ($753.7 million), accounting for about 25% of total assets.

Notable changes included an increase in other short-term receivables - from VND916 billion ($35.2 million) to VND1,422 billion ($54.68 million) and a decline in unfinished rubber plantation construction costs to VND6,600 billion ($253.79 million), as some assets were capitalized and began depreciation.

Rubber prices expected to stay high

For 2025, GVR plans to extract around 452,000 tons of rubber latex, up 1.5% from the previous year.

The company forecasts an average selling price of VND40.8 million ($1,568) per ton - lower than the VND44 million ($1,691) average in 2024. However, as of end-February, the actual selling price had reached VND51.2 million (1,968 million) per ton.

At the group's 2024 production and business summary conference held on March 27, general director Le Thanh Hung projected that rubber prices would remain high in 2025, particularly in the southeastern region, where the average price was already exceeding VND50 million ($1.922) per ton.

He urged subsidiaries to ramp up extraction, purchasing, and processing efforts to capitalize on favorable market conditions and fully utilize existing equipment.

To boost revenue further, GVR plans to purchase over 100,000 tons of rubber, an increase of more than 28% compared to 2024.

Hung emphasized the need for member companies to proactively seek new purchasing sources to ensure stable supply for processing and distribution, especially as rubber plantations are currently at peak productivity.

The group is scheduled to hold its 2025 AGM on June 17.

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