Danang Rubber JSC (HSX: DRC), one of the biggest tyre manufacturers in Vietnam, recorded a profit after tax of VND106.2 billion ($4.6 million), but also faced a negative operating cash flow of VND51.3 billion ($2.2 million).
|With over 45 years experienced, Danang Rubber JSC is the top tyre company in Vietnam |
According to the financial report of the second quarter issued on July 16, the company recorded net revenues of VND1.2 trillion ($52 million) and profit after tax of VND106.2 billion ($4.6 million), up 53 per cent and 121 per cent over the same period last year respectively.
The cost of goods sold was VND978 billion ($42.4 million), and the gross profit margin reached 18.8 per cent – 14.8 per cent higher than in the same period last year.
According to the company, the high net revenues are mainly generated by the promotional campaigns and an increased consumption.
Thanks to the business results of the second quarter, the profit after tax in the first half of the year increased to VND170 billion ($7.37 million), two times higher than in the same period last year.
Financial revenues increased by 40.7 per cent to VND9.9 billion ($429,284), while expenses decreased by 8 per cent to VND12.4 billion ($537,690). However, general and administrative expenses increased by 6 per cent to VND15.4 billion ($667,776), and selling expenses doubled to VND75.3 billion ($3.3 million).
Thus, DRC's operating cash flow was a negative VND51.3 billion ($2.2 million) compared to VND381.7 billion ($16.6 million) of the same period last year, with the main reason being the payments to suppliers of goods and services, which increased by 87 per cent over the same period.
Revenues in the first six months reached VND2.1 trillion ($91.1 million), up 33 per cent compared to the first half of last year, fulfilling 55 per cent of this year's target. Profit before tax reached over VND212 billion ($9.2 million), completing approximately 71 per cent of the goal for the whole year. Profit after tax nearly doubled to VND170 billion ($7.37 million).
In the third quarter, the company aims to cash in another VND1 trillion ($43.37 million) of net revenues and VND95 billion ($4.1 million) of profit before tax, which would signify an increase of 14 per cent and 24 per cent, respectively, compared to the same period last year.