Binh Minh Plastics reports all-time high profit in Q2

Improved sales revenue and a higher gross profit margin of 47% helped Binh Minh Plastics JSC, a leading plastics company in Vietnam, post a record after-tax profit of nearly VND330 billion ($12.62 million) in Q2/2025.

The figure represented an increase of almost 18% compared to Q2/2024 and marked the highest quarterly profit in the company's history, according to its newly-released consolidated financial statement.

The company, listed on the Ho Chi Minh Stock Exchange as BMP, said its Q2 revenue rose by more than 13% to over VND1,308 billion ($50 million). The cost of goods sold also rose, but at a slower pace, resulting in a gross profit of VND610.8 billion ($23.36 million), up 21% year-on-year.

The gross profit margin for this period was approximately 46.7%, the highest since Binh Minh Plastics became a subsidiary of Nawaplastic Industries, a member of Thailand’s Siam Cement Group (SCG), in early 2018. For the past two years, the company has maintained a gross profit margin above 40%.

Financial income surged nearly 50% to over VND25 billion ($956,000), mainly from interest on deposits. This was driven by increasing its bank deposits to VND2,297 billion ($87.84 million), up from VND1,914 billion at the beginning of the year.

Operating expenses rose slightly but not significantly. However, the company recorded a sharp drop - over 50% - in other income from asset and scrap sales.

For the first half of the year, Binh Minh Plastics reported over VND2,691 billion ($102.9 million) in revenue and nearly VND617 billion ($23.6 million) in post-tax profit, fulfilling 50% and over 58% of its full-year respective targets.

If favorable conditions persist through year-end, the company could post the highest annual profit in its 48-year history.

Strong business performance has enabled Binh Minh Plastics to pay dividends. This year, the company plans to allocate at least 50% of its post-tax profit for dividend distribution.

Last year, Binh Minh Plastics used up to 99% of its profit (more than VND981.5 billion or $37.53 million) to pay cash dividends. Each shareholder received VND11,990 ($0.46) per share. The Thai shareholder received the largest portion - nearly VND540 billion ($20.65 million) - as it currently holds nearly 55% of BMP shares.

The Thai shareholder has received about VND2,530 billion ($96.75 million) in cash dividends over the 12 years since investing in Binh Minh Plastics. Previously, SCG spent over VND2,800 billion across four rounds to acquire BMP shares. Thus, through dividends alone, the Thai investor has already recouped over 90% of its investment.

On June 30, 2025, Binh Minh Plastics’s total assets reached VND3,526 billion ($134.84 million), an increase of 10.2% compared to the beginning of the year. Current assets accounted for 83.8% of total assets, equivalent to VND2,955 billion. Of this, bank deposits stood at VND1,656 billion, making up 47.1%, while cash and cash equivalents totaled VND641.4 billion, or 21.7%.

In terms of capital structure, total liabilities amounted to VND728.3 billion ($27.85 million), or 20.6% of total capital, with short-term liabilities accounting for VND710.8 billion. The quick ratio stood at 3.59 times; the current ratio was 4.16 times; and the debt-to-equity ratio (D/E) was 0.26 times.

The quick ratio, also called an acid-test ratio, measures a company's short-term liquidity against its short-term obligations. The current ratio is a liquidity metric that measures a company's ability to pay its short-term liabilities with its current assets.

In the stock market, BMP closed Wednesday at VND144,100 ($5.51) per share.