GVR – Profit declines YoY in Q1 mainly from lower compensation income despite improved core earnings – Earnings Flash
  • 2024-05-02T00:00:00
  • Company Research
  • GVR announced Q1 2024 results with revenue of VND4.6tn (USD183mn; +11% YoY) and NPAT-MI of VND476bn (USD19mn; -14% YoY). While EBIT improved 14% YoY, the bottom-line decline in Q1 2024 was mainly because of lower compensation income YoY. As the rubber segment’s (main profit contributor) recovery is in line with our expectation, we anticipate no significant change to our 2024F forecast, pending a fuller review. 
  • Rubber latex revenue increased 16% YoY to VND3.4tn (USD136mn) in Q1 2024, completing 18% of our full-year forecast. Although GVR has not released a breakdown of its sales volume and average selling price (ASP), we believe the improvement was driven by a YoY increase in both ASP and volume. In Q1 2024, Vietnam’s rubber exports were up 8.5% YoY in volume and 5.3% YoY in ASP to USD1,466/ton. 
  • Net other income in Q1 2024 was down 79% YoY to VND70bn (USD2.8mn), of which GVR recognized VND67bn (USD2.7mn; +5% YoY) of income from tree liquidation and VND3.2bn (USD0.1mn; -98% YoY) from compensation (vs Q1 2023 compensation income of VND211bn/USD8.4mn, mainly from VSIP III).

GVR’s Q1 2024 results 

VND bn

Q1

2023

Q1

2024

YoY

2024F

Q1 as % 

of 2024F

Net revenue

4,135

4,585

11%

24,921

18%

  • Rubber latex 

2,916

3,391

16%

18,892

18%

  • Rubber products

93

135

45%

557

24%

  • Wood

557

540

-3%

2,928

18%

  • IP

159

166

4%

924

18%

  • Others

411

354

-14%

1,621

22%

Gross profit

1,006

1,076

7%

5,886

18%

SG&A expenses

-471

-477

1%

-2,652

18%

EBIT

535

599

12%

3,235

19%

Financial income

231

227

-2%

1,014

22%

Financial expense

-143

-111

-22%

-591

19%

Net income from affiliates

-11

-6

-42%

20

N.M.

Net other income

336

70

-79%

1,145

6%

PBT

948

778

-18%

4,823

16%

NPAT-MI

550

476

-14%

3,104

15%

 

 

 

 

 

 

GPM

24.3%

23.5%

 

23.6%

 

OPM

12.8%

13.2%

 

13.0%

 

NPM

13.3%

10.4%

 

12.5%

 

Source: GVR, Vietcap forecast (last updated March 29, 2024)


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