Q2 as the Key Driver of H1 Performance
In Q2 2026 alone, Vinatex recorded consolidated net revenue of VND 5,007.9 billion, up 13.1% year on year. Gross profit reached VND 786 billion, an increase of 18.4%, while profit before tax rose 45.1% to VND 574.5 billion, accounting for nearly 62% of the Group’s total result for the first half of the year.
After tax, the Group posted consolidated profit of VND 525.5 billion in Q2, up 57.6% compared with the same period in 2025.
The positive financial performance was supported by solid production and business results in the Group’s two core segments. In the first half of the year, the Yarn segment delivered encouraging results, with equipment utilization reaching 98% of capacity and output reaching 58% of the full-year plan. Meanwhile, the Garment segment continued to maintain its position in key export markets, providing an important impetus for the Group’s overall growth.
Gross Profit Growing Faster Than Revenue
For the first six months of 2026, Vinatex’s net revenue reached VND 9,494 billion, up 9.2% from VND 8,696.6 billion in the same period last year. Meanwhile, the cost of goods sold increased by 8%, slower than the growth in revenue, to VND 8,119 billion.
As a result, gross profit reached VND 1,375 billion, up 16.5%, representing an increase of approximately VND 195 billion year on year. The gross profit margin improved from 13.57% to 14.48%, an increase of around 0.92 percentage points.
The increase in gross profit accounted for approximately 74% of the year-on-year increase in profit before tax in the first six months, indicating that profit growth was primarily driven by improved performance in the Group’s core production and business operations, rather than relying on any one-off or extraordinary income.
In Q2 alone, the gross profit margin reached 15.7%, compared with 15% in the same period last year.
Improved Balance in Financial Operations
Financial income in the first six months of 2026 reached VND 205 billion, up 8.6% year on year. Meanwhile, financial expenses fell by 16.7%, from VND 251.3 billion to VND 209.3 billion.
As a result, the negative gap between financial income and expenses narrowed significantly, from VND 62.5 billion in H1 2025 to approximately VND 4.3 billion in H1 2026. This improvement was supported by more effective working capital management during the first half of 2026, helping the Group strengthen financial resilience while contributing approximately VND 58.3 billion to the increase in profit before tax.
However, interest expenses remained high at VND 175.2 billion, up 7.4% year on year. Although this increase was slower than revenue growth, it indicates that pressure from the cost of capital remains a factor that requires continued monitoring and control.
Improved Cost Management Efficiency
In the first six months of the year, the Group’s selling expenses reached VND 268.5 billion, up 10.1%, while general and administrative expenses stood at VND 499.9 billion, up 4.8%. Although both expenses increased in absolute terms, their combined ratio to net revenue declined from approximately 8.29% to 8.09%. In particular,general and administrative expenses as a percentage of net revenue fell from 5.49% to 5.26%, indicating that the expansion in revenue did not result in a corresponding increase in administrative costs. This also reflects the Group’s stronger focus on sales promotion and working capital management, with the objective of reducing finished-goods inventories.
This trend was even more pronounced in Q2, when general and administrative expenses were trimmed down year on year, while net revenue increased by more than 13%. The combined ratio of sales and general and administrative expenses to net revenue declined from 8.54% to 7.79% in the quarter.
These figures reflect positive improvements in the Group’s cost management efficiency and ability to leverage its operating scale. Together with the improved gross profit margin and stronger financial balance, tighter control of administrative expenses helped lift profit from business operations to VND 902.2 billion in the first six months, an increase of 37.7% year on year.
Increased Contributions from Joint Ventures and Associates
The Group’s share of profit from joint ventures and associates reached nearly VND 300 billion in the first six months, up 15.9%, representing an increase of approximately VND 41.2 billion compared with the same period last year. In Q2 alone, this contribution reached nearly VND 159 billion, up 20.8%. The results demonstrate that entities within the Group continued to make significant contributions to Vinatex’s consolidated performance.
Other income reached nearly VND 28 billion in the first six months, compared with VND 11.8 billion in the same period last year. Although the absolute increase of approximately VND 16.2 billion had a positive impact, it accounted for only a small proportion of the overall increase in profit before tax. Therefore, Vinatex’s profit growth was primarily driven by improved core business performance, more effective financial management, and increased contributions from joint ventures and associates.
Profit Attributable to Parent Company Shareholders Rises Nearly 50%
Taking all the above factors into account, Vinatex’s profit before tax for the first six months of 2026 reached VND 930.1 billion, up 39.5% from VND 667 billion in the same period last year. The profit-before-tax margin on net revenue increased from 7.67% to 9.80%.
Consolidated profit after tax for the first six months reached VND 857.7 billion, up 46.8% year on year. Of this, profit attributable to owners of the parent company amounted to VND 527.6 billion, an increase of 49.5%, while profit attributable to non-controlling interests reached VND 330 billion, up 42.8%.
Growth Driven by Multiple Factors
Vinatex’s first-half 2026 results demonstrate that flexible management and operational strategies have delivered positive results amid an increasingly volatile market environment. Revenue continued to grow, while the cost of goods sold increased at a slower pace than revenue, resulting in an improved gross profit margin. The balance between financial income and expenses also improved, while administrative costs were effectively controlled in line with the scale of operations. Greater focus on inventory, receivables and working capital management further enhanced capital efficiency. In addition, contributions from joint ventures and associates continued to increase.
Going forward, the Group will continue to focus on optimizing the use of its resources and assets, improving product sales and capital efficiency, while developing its human resources and ensuring that its organizational structure and operations are better aligned with technological advancements and more capable of adapting to market volatility.
