Inside a factory of Bình Minh Plastic Joint Stock Company (BMP). BMP reported third quarter 2023 revenue reaching VNĐ926 billion, down 38 per cent. However, profit after tax exceeded VNĐ208 billion, an increase of more than 19 per cent. — Photo BMP

The plastic industry is currently experiencing a decline in revenue, but there are notable differences in business performance among enterprises.

BMP, NTP, AAA: Profit growth

Bình Minh Plastic Joint Stock Company (BMP) reported third quarter 2023 revenue of VNĐ926 billion, down 38 per cent. However, profit after tax exceeded VNĐ208 billion, an increase of more than 19 per cent.

In the first nine months of 2023, Bình Minh Plastics achieved a revenue of VNĐ3.7 trillion, down 15.8 per cent, but their profit after tax reached VNĐ784.1 billion, a remarkable 75 per cent increase compared to the same period last year. The profit exceeded the annual plan by 20 per cent (VNĐ651 billion).

One of the key factors contributing to Bình Minh Plastics' improved profitability is the advantage they have in input materials. Nawaplastic Industries, a member of the SCG Group (Thailand) and owner of the Long Sơn Petrochemical Complex, is a shareholder of Bình Minh Plastics. This help the company import raw materials (petrochemical) at preferential prices from Nawaplastic Industries and maintain a stable supply. Bình Minh Plastic mainly utilises primary plastic pellets, including PVC, PP and HDPE, all derived from petrochemical.

According to Bảo Việt Securities Company, the price of PVC continues to decline due to ample supply and low demand, which has helped Bình Minh Plastics maintain favourable profit margins. It is estimated that their profit for 2023 will reach VNĐ1 trillion, indicating a 47.2 per cent increase compared to 2022.

Tiền Phong Plastic Joint Stock Company (NTP) also experienced significant profit growth in the third quarter of 2023, thanks to a notable decrease in input prices. Despite a 6 per cent decrease in revenue to VNĐ1.3 trillion, their profit after tax increased by 76.7 per cent during the same period, reaching VNĐ148 billion.

In the first nine months of 2023, Tiền Phong Plastic achieved revenue of over VNĐ3.83 trillion, down 7.2 per cent, while profit after tax decreased by 3.8 per cent to VNĐ394.7 billion.

For the year 2023, Tiền Phong Plastic aims to achieve a revenue of VNĐ5.88 trillion and a pre-tax profit of VNĐ535 billion. As of the end of September, the company had accomplished 67 per cent of its revenue plan and nearly 87 per cent of its profit plan (reaching VNĐ464.64 billion in nine months).

An Phát Xanh Plastic Joint Stock Company (AAA) is another business that has achieved high profits through cost optimisation. In the third quarter of 2023, they recorded a profit after tax of VNĐ103.5 billion, representing a 35 per cent increase compared to the same period.

This growth was attributed to increased revenue and reduced costs. However, over the first nine months of the year, the company experienced a decrease of more than 16 per cent in both revenue and profit after tax, reaching VNĐ9.9 trillion and VNĐ217 billion, respectively.

Pha Lê Plastic Technology and Production Joint Stock Company (PLP) achieved a 25.3 per cent growth in revenue and a remarkable 149 per cent increase in profit after tax, amounting to VNĐ443 billion and VNĐ7.8 billion, respectively. Their profit surged due to tight operating cost control. However, the consolidated profit decreased by more than 30 per cent from the same period.

Despite the challenges faced by the plastic industry, these companies have implemented various strategies such as cost optimisation and favourable input material prices to achieve profit growth.

DAG, DPC, TPC: Losses

The challenging economic situation, especially in the real estate market, has also had a negative impact on the financial performance of various plastic enterprises.

For instance, Đông Á Plastic Group Joint Stock Company (DAG) incurred losses primarily due to raw material factors. In the third quarter of 2023, the company generated revenue of only VNĐ3.7 billion, resulting in a negative profit after tax of VNĐ3.9 billion.

Over the first nine months of the year, their revenue amounted to VNĐ17.2 billion, reflecting a decline of 38.3 per cent, with a negative profit after tax of VNĐ144.5 billion. The consolidated business results were even worse, with a loss of VNĐ16.2 billion in the third quarter and a cumulative 9-month loss of VNĐ181.9 billion.

Đông Á explained that the company's main domestically sourced raw materials experienced price increases during the same period, leading to higher costs compared to achieved sales revenue. Additionally, the company faced significant increases in other expenses, including late tax payments and fines. Despite the decrease in revenue, they still had to cover factory operating costs, business management costs, depreciation costs, and production and business activity expenses.

Similarly, Tân Đại Hưng Plastic Joint Stock Company (TPC) incurred a loss of VNĐ51 billion in the first nine months of 2023. The company's leaders attributed this loss to a decrease in sales volume, resulting in reduced revenue. Furthermore, despite the decrease in sales, interest expenses and business management costs remained unchanged, contributing to the overall losses.

Đà Nẵng Plastic Joint Stock Company (DPC) made efforts to boost sales activities and develop business plans for market expansion. This helped them achieve a VNĐ6.3 billion revenue in the third quarter of 2023, a 25 per cent increase compared to the same period.

However, due to the increase in cost prices, as well as sales and business management expenses, the company incurred a loss of VNĐ1.3 billion in the third quarter, with a cumulative loss of VNĐ3.6 billion over nine months. — VNS