Tay Ninh Rubber (TRC) has a big profit in the third quarter of 2024, short-term debt also increased by 59%

Big profits in Q3 thanks to rising rubber prices

In the third quarter of 2024, Tay Ninh Rubber Joint Stock Company (Code: TRC) recorded a 29% increase in revenue over the same period, reaching VND 221 billion. Of which, the cost of goods sold was equivalent to the same period, accounting for VND 151 billion, causing gross profit to increase 2.3 times, reaching VND 69 billion.

Financial revenue increased 6 times, reaching 3.9 billion VND while financial expenses decreased 36% to 2.4 billion VND, helping to bring in a relatively good source of financial profit. However, investment activities in joint ventures and associated companies lost 4 billion VND, this loss is 60% higher than the same period.

Tay Ninh Rubber (TRC)'s third quarter profit increased sharply, short-term debt also increased by 59% (Photo TL)

Selling expenses and administrative expenses accounted for VND2.7 billion and VND11 billion respectively. As a result, profit after tax reached VND73 billion, nearly 5 times higher than the same period.

Cumulative revenue of Tay Ninh rubber in the first 6 months of the year reached 457 billion VND, up 32%. Profit after tax reached 101 billion VND, 4 times higher than in the first 9 months of 2023.

Explaining the sudden increase in business results, Tay Ninh Rubber said that the main reason for the sharp increase in rubber latex prices in the third quarter of 2024 was the sharp increase. This factor helped the profits of both the parent company and its subsidiary, Tay Ninh Siem Reap PTCS, increase compared to the same period last year. Thanks to this result, Tay Ninh Rubber exceeded the annual profit target by 44%.

Operating mainly from equity, short-term debt increased by 59%

Recorded at the end of the third quarter of 2024, Tay Ninh Rubber's total assets reached VND 2,085 billion, an increase of nearly VND 100 billion compared to the beginning of the year. Cash and cash equivalents doubled compared to the beginning of the year, accounting for VND 203 billion.

Notably, the majority of the company's assets are in the form of long-term assets, accounting for 1,585 billion VND. Of which, 947 billion VND are fixed assets, with accumulated depreciation of 405 billion VND, equivalent to nearly 1/3 of the value of fixed assets.

In addition, the company is also holding 484 billion VND in unfinished construction costs. Along with that is a long-term financial investment of 152 billion VND. This is the capital source for investment in other units and companies.

Regarding the capital structure, payables only account for 17.6%, showing that TRC operates mainly on equity capital. However, short-term debt is fluctuating strongly compared to the beginning of the period, accounting for 282 billion VND. Compared to the beginning of the period, short-term debt increased by 59%. The increase mainly comes from short-term prepayments from buyers.

Equity accounts for VND 1,716 billion with undistributed profit after tax accounting for VND 101 billion.

Source: https://www.congluan.vn/cao-su-tay-ninh-trc-lai-lon-trong-quy-3-2024-no-ngan-han-cung-tang-59-post316816.html