Binh Minh Plastic doubles profits

By Phuong Dong April 20, 2023 | 07:38 pm PT

Inside a Binh Minh Plastic factory. Photo courtesy of Binh Minh

Binh Minh Plastic, which was acquired by a Thai company in 2018, doubled its profits in the first quarter though revenues only increased by 6%.

It reported sales of VND1.45 trillion (US$61.7 million), and though costs increased, profit after tax doubled year-on-year to VND281 billion as the profit margin improved by more than 10 percentage points.

This is the highest quarterly profit since the company was acquired by Nawaplastic Industries, a subsidiary of SCG Group.

It surpassed the VND250 billion achieved in the fourth quarter of last year, and extended its profitability to a fifth consecutive quarter.

Its management attributed the performance to the recovery in demand, the trust consumers have in the Binh Minh brand and steady raw material prices.

The company has created two new departments for supply chain and innovation, which has improved production efficiency.

Binh Minh Plastic has revenue and profit targets for this year of VND6.36 trillion and VND651 billion.

The company expects to pay out at least 50% of its profit as dividends.

Last year it paid out 99% of its profits of VND690 billion.