The audited financial report of the Vietnam Rubber Group (stock code: GVR) shows a 25% year-on-year increase in revenue, reaching 11,570 billion VND. Natural rubber production and trading contributed nearly 79% of total revenue, with the remainder coming from wood processing, real estate, and infrastructure.

GVR earned over 470 billion VND in financial revenue, primarily from bank deposit interest. The liquidation of damaged rubber trees also generated substantial income, nearly 740 billion VND, recorded as other income.

As a result, GVR reported pre-tax and post-tax profits, both up 85% year-on-year, reaching 3,517 billion VND and 2,934 billion VND, respectively. This marks a record high for the first half of any year.

In an explanatory document sent to the Ho Chi Minh City Stock Exchange (HOSE), GVR leadership attributed the surge in business results to higher rubber prices compared to the same period last year. Previously, at the annual general meeting in mid-June, Tran Thanh Phung, the group's deputy general director, stated that this year marks the beginning of a recovery cycle for rubber prices after a period of supply-demand imbalance. Last year, the average selling price reached 43 million VND per ton, but this year's forecast is 46-47 million VND. In the first 6 months of this year alone, the average selling price reached 52 million VND per ton.

"Prices may adjust in the final months of the year, but due to seasonal factors, the decrease won't be significant," Phung said.

After six months, GVR has achieved 37% of its revenue target and nearly 60% of its profit target. According to the consolidated plan, the group expects to earn over 31,000 billion VND in revenue and achieve a net profit of nearly 5,000 billion VND this year, a slight increase compared to last year. Due to the biological characteristics of rubber trees, the group typically records significant revenue and profit in the final two quarters of the year.

However, in an analysis report published last month, Agribank Securities Company predicted that GVR's business results in the second half of the year are likely to stagnate due to the tendency of rubber prices to adjust. Despite this, the analysis team maintains a positive medium-term business outlook due to the global rubber supply shortage and the significant potential from converting rubber plantations into industrial park land.

GVR currently has a charter capital of 40,000 billion VND, with the Ministry of Finance representing the state, owning 96.77% of the capital. As of the end of June, the group had total assets exceeding 83,600 billion VND and 8,625 billion VND in undistributed profits. The group plans to allocate 1,600 billion VND for dividend payments, equivalent to a 4% rate, higher than the initial plan of 1,200 billion VND.

GVR manages over 380,043 hectares of rubber, with approximately 30% of the plantations located in Laos and Cambodia. The area of land already developed into industrial parks is over 4,600 hectares, with plans to develop nearly 16,600 hectares more.

Phuong Dong