GVR’s revenue, profit, and gross profit margin have been at a high level for many years, according to the Q4 2024 consolidated financial statements. Revenue reached 9,300 billion VND, a 23% increase year-on-year, mainly driven by the core business of rubber production. There were also improvements in rubber products, wood processing, infrastructure, and real estate. Notably, gross profit doubled to over 3,000 billion VND, resulting in a gross profit margin of 33%, up from 21% in the previous year.
In addition to the high rubber prices, this performance was supported by reduced borrowing costs, lower selling expenses, and higher profits from joint ventures and associates. As a result, net profit for Q4 reached nearly 2,000 billion VND, a 69% increase.
Vietnam’s rubber industry leader concluded its most successful year since 2012 – when rubber prices were very high – with revenue and profit of over 26,200 billion VND and 4,200 billion VND, respectively, representing a 19% and 61% increase year-on-year.
|
GVR’s revenue and profit reach new heights after more than 10 years (in trillion VND)
Source: Author’s compilation
|
However, GVR’s success remains largely dependent on its primary business of rubber cultivation and extraction. At the 2024 year-end conference, Mr. Do Huu Huy, Vice Chairman of the State Capital Management Committee at Enterprises, added that while other sectors, such as industrial parks and hydropower, have yielded certain efficiencies, they still face legal, climate change, and competitive challenges. Other activities, including rubber wood and rubber industry, are facing difficulties and are not effective.
At the end of 2024, the Group continued to maintain a large amount of assets in the bank, with approximately 20,000 billion VND in term deposits and cash equivalents, significant compared to the total short-term assets of over 27,700 billion VND. This stable source of income generated over 1,000 billion VND in interest income for the Group in the past year.
In addition to financial success, GVR has made significant progress in its sustainable development strategy. The Group has obtained national and international sustainable forest management certificates for over 215,000 hectares of forest and implemented solutions to comply with the EU’s Anti-Deforestation Regulations (EUDR). Currently, 34 member companies of GVR have developed sustainable forest management plans for a total area of approximately 287,000 hectares, of which 18 companies have achieved VFCS/PEFC-FM certification.
Regarding EUDR, a report by Phu Hung Securities (PHS) states that these policies are likely to disrupt and alter a portion of the natural rubber supply entering Europe, benefiting Vietnamese businesses, especially those well-prepared with sustainability certifications. The report, released in November 2024, further analyzes: “This regulation will increase the demand for certified sources from producing units serving the European market, especially from China’s manufacturing sector. This presents an opportunity for Vietnamese suppliers who have completed sustainability certifications, as China currently accounts for 75%-80% of Vietnam’s rubber export value.”
Furthermore, as we move into 2025, the natural rubber industry is expected to continue facing fluctuations due to supply shortages. Speaking at the Rubber Industry Workshop earlier this month, Ms. Arusha Das, Head of Pricing, Data, and Research at Helixtap, a global commodities data and information platform, attributed the strain on natural rubber supply to the impact of climate change and geopolitical factors.
In Southeast Asia, the world’s largest rubber-producing region, abnormal weather patterns have caused an early leaf-fall season, significantly reducing output. Simultaneously, Côte d’Ivoire, a major rubber exporter in Africa, has imposed a ban on the export of cup lump (raw rubber), further limiting global supply.
Mr. Le Thanh Hung, Chairman of the Vietnam Rubber Association (VRA) and General Director of GVR, also acknowledged that 2025 would be a challenging year due to climate change impacts, emission reduction pressures, and stringent requirements from EUDR. In the short term, rubber exporters are likely to increase sales before the regulations come into force at the end of this year.
Despite the challenges, the industry’s total export turnover is expected to reach 12.1 billion USD in 2025, a 10% increase compared to 2024.
Tu Kinh
– 18:18 31/01/2025
Record-Breaking Profits for Rubber Group Since 2012
The rubber price remained high in Q4, enabling the Vietnam Rubber Group (HOSE: GVR) to achieve its highest revenue and profits in over a decade.
Coteccons Profits Soar to $85 Million in H1 of 2025 Fiscal Year
The first half of the 2025 financial year (July 1st to December 31st, 2024) saw the Construction Joint Stock Company Coteccons (HOSE: CTD) achieve impressive financial results. The company recorded a net profit of nearly VND 200 billion, a remarkable 47% increase compared to the same period last year, and successfully fulfilled 46% of its annual plan. Additionally, new contract wins amounted to VND 16.8 trillion, showcasing the company’s strong performance and promising future prospects.
The Captivating Craft of Words:
“Dat Phuong’s Profitable Prowess: A Stellar Fourth Quarter with nearly 100 Billion VND in Profit.”
The Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, has announced its fourth-quarter 2024 financial statements, reporting a net profit of VND 97 billion, the highest in the past seven quarters. This figure represents a 15% increase compared to the same period last year, yet Vietcombank has only achieved 88% of its annual profit plan.
The Power of Words: Unlocking Online Success with Captivating Copy
Unleash the Potential: Discover the Secrets to Writing Compelling Content that Boosts Revenue for Cao Su Dong Phu with Soaring Rubber Prices
In 2024, the continuous rise in rubber prices propelled Dong Phu Rubber Joint Stock Company (HOSE: DPR) to record peak revenue in a decade.
The Magic Formula for Success: Unlocking the Secrets to a Booming Business
The fourth-quarter profit surge propelled the Southern Basic Chemicals Corporation (HOSE: CSV) to a successful year, surpassing the targets approved by the 2024 Annual General Meeting.
