Fertiliser producers post record profits in Q3

Fertiliser producers post record profits in Q3

This surge in profitability comes as the industry benefits from stabilising domestic demand and improving international prices, along with a drop in raw material costs.

Workers upload PVFCCo's products on a truck for export. — VNA/VNS Photo

Việt Nam's fertiliser industry has reported impressive growth in the third quarter of 2025 with several companies achieving record profits due to a robust recovery in the prices of key products such as DAP, urea and NPK.

This surge in profitability comes as the industry benefits from stabilising domestic demand and improving international prices along with a drop in raw material costs.

Vietnam National Chemical Group (Vinachem) noted positive signals as the industry entered Q3 indicating a stable domestic market and recovering global prices which have significantly impacted revenue and profit dynamics across the sector.

Despite the promising overall trends, there is marked differentiation among companies with some witnessing substantial profit increases while others continue to struggle with financial costs and production challenges.

One standout performer is PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) which reported significant growth in its financial results for Q3.

The company achieved revenue of over VNĐ3.7 trillion (US$141.3 million) up 21 per cent year-on-year.

Thanks to effective cost control, PVFCCo registered a gross profit of VNĐ719 billion doubling the previous year's figure. However, financial revenue declined by 26 per cent to VNĐ117 billion impacting the overall performance.

Nonetheless, after accounting for expenses PVFCCo reported net profits of VNĐ239 billion, a 3.6-fold increase from the same period last year.

With a total revenue of VNĐ13.15 trillion over the first nine months, the company has surpassed its annual revenue target by 2 per cent and exceeded its profit target by a striking 270 per cent.

In a similar vein, DAP - Vinachem unveiled its Q3 financial report marking its highest profit level since listing in 2015.

The company's revenue soared to nearly VNĐ1.4 trillion, an impressive 85 per cent increase over last year.

This growth was driven by both increased sales volume and rising average prices which climbed to VNĐ17.74 million per tonne.

The company's financial income increased to nearly VNĐ20 billion, a threefold increase due to higher interest earnings and favourable foreign exchange differences.

As a result, the firm reported a net profit of VNĐ221 billion, significantly up from the previous year.

Meanwhile, Van Dien Fused Magnesium Phosphate Fertiliser JSC (VDFCO) also released promising Q3 results, posting net revenue of over VNĐ292 billion which represents a 22.7 per cent increase year-on-year.

A slowdown in the growth of the cost of goods sold allowed for a gross profit increase of 79 per cent, amounting to nearly VNĐ205 billion.

The company reported a net profit of VNĐ26 billion nearly double that of the previous year, attributed to a 25 per cent increase in consumption compared to the same quarter in 2024.

Conversely, Habac Nitrogenous Fertiliser and Chemicals JSC (HANICHEMICO) struggled during the same period, recording a significant decline in net revenue of VNĐ651 billion  a 36 per cent decrease from last year.

The company faced production disruptions due to ageing equipment that required extensive overhauls leading to substantial losses. It reported a net loss of VNĐ96 billion contrasting sharply with a profit of VNĐ38 billion during the same period in 2024.

VNDirect's industry forecast report showed that total domestic fertiliser demand is expected to slightly improve in 2025 reaching approximately 10.6 to 10.8 million tonnes.

The sector is anticipated to shift towards more sustainable and complex fertilisers gradually replacing single-nutrient fertilisers like urea, phosphate and potash. 

Bizhub