Vinatex exceeds full-year profit target after nine months

Vinatex exceeds full-year profit target after nine months

In the third quarter alone, Vinatex posted a gross profit of VNĐ780 billion and a pre-tax profit of VNĐ540 billion, marking the second consecutive quarter in which pre-tax earnings crossed the VNĐ500 billion threshold.

Production at Hanoi Textile and Garment Joint Stock Corporation (Hanosimex), a member of Vinatex. Photo vinatex.com.vn

Vietnam National Textile and Garment Group (Vinatex) has reported a consolidated pre-tax profit of nearly VNĐ1.47 trillion (US$58 million) for the first nine months of 2026. According to its latest financial statements, this marks a 41 per cent increase from a year earlier, allowing the group to surpass its full-year profit target by 6.7 per cent with three months of the year still remaining.

Consolidated net revenue rose 7.6 per cent year-on-year to approximately VNĐ14.79 trillion. Profit growth significantly outpaced revenue growth, reflecting a sharp improvement in gross margins and a substantial reduction in financial expenses during the period.

In the third quarter alone, Vinatex posted a gross profit of VNĐ780 billion and a pre-tax profit of VNĐ540 billion, marking the second consecutive quarter in which pre-tax earnings crossed the VNĐ500 billion threshold. A disciplined 5.5 per cent containment in the cost of goods sold (COGS) helped lift the group’s quarterly gross profit margin to 14.6 per cent, up from 12.9 per cent in the same period last year.

The group's spinning and garment operations remained its primary growth engines. The spinning segment generated VNĐ6.66 trillion in revenue over the first nine months – a 15.9 per cent year-on-year increase – while its net profit surged an impressive 168.1 per cent to VNĐ381.8 billion, with all 12 operational units reporting profitability. Vinatex attributed this turnaround to optimised production management, higher equipment utilisation, and agile adjustments to shifting selling prices and raw material inputs.

Meanwhile, the garment segment recorded consolidated revenue of VNĐ5.85 trillion and a pre-tax profit of VNĐ679.2 billion. This yielded an 11.6 per cent profit margin, exceeding the group's full-year target by 10 per cent. The group said garment manufacturers had focused on increasing value added per labour hour and restructuring their customer base amid intense competition in export markets and rising labour costs.

Vinatex also recorded a significant improvement in its financial performance. Financial income rose 17.9 per cent year-on-year to VNĐ285.1 billion, while financial expenses fell nearly 20 per cent to VNĐ263.4 billion. As a result, the group achieved a net financial surplus of VNĐ21.7 billion, a sharp turnaround from the VNĐ86.8 billion deficit recorded in the same period last year. Driven by these gains, operating profit surged 40.5 per cent to VNĐ1.44 trillion.

Alongside rising profits, the group successfully optimised its balance sheet. Inventories fell by nearly VNĐ666 billion (down 19 per cent) from the beginning of the year. Vinatex also lowered its risk profile by reducing outstanding borrowings and finance lease liabilities by VNĐ922 billion, bringing the total down to VNĐ5.85 trillion. 

As of September 30, 2026, Vinatex's total assets exceeded VNĐ21.11 trillion. Equity grew by more than VNĐ1 trillion from the start of the year to reach VNĐ11.18 trillion, while undistributed post-tax profits stood robustly at VNĐ1.97 trillion. 

Bizhub