VINACHEM

The strong recovery in the selling prices of key fertilizer products like DAP, Urea, and NPK in Q3/2025 has helped many companies in the sector achieve favorable business results, with some even posting record profits.

DAP - VINACHEM Reports Record Profit, Exceeding Full-Year Target

The Domestic fertilizer industry entered Q3/2025 with many positive signals as international market selling prices recovered, domestic demand remained stable, and raw material costs showed signs of cooling down. Consequently, the profit landscape among fertilizer producers has been distinctly differentiated: many companies recorded strong growth, while a few units remained under pressure from financial costs and production technology challenges.

DAP - VINACHEM Joint Stock Company stood out in Q3, recording its highest profit since listing in 2015. Thanks to a sharp increase in both the selling price and output of DAP, DAP - VINACHEM achieved revenue of nearly 1,400 billion VND, an 85% increase compared to Q3/2024. The cost of goods sold rose at a slower rate, only 59%, boosting the gross profit to 305 billion VND, 4.6 times higher than the same period.

In addition to favorable market conditions, DAP - VINACHEM also benefited from positive financial activities. Financial revenue reached nearly 20 billion VND, almost 3 times higher year-on-year, primarily from deposit interest and exchange rate differences. Meanwhile, financial costs dropped sharply by 55% to only 1.4 billion VND, thanks to reduced exchange rate losses and no significant outstanding loan debt. Selling expenses slightly increased by 13% to 24 billion VND, while General and Administrative (G&A) expenses remained flat.

Consequently, DAP - VINACHEM's net profit in Q3 reached 221 billion VND, 11 times higher than Q3/2024, marking the highest-profit quarter in the company's operating history. This result illuminated DAP - VINACHEM's cumulative 9-month picture for 2025 with net revenue of 4,200 billion VND, up 68%, and profit after tax of 496.0 billion VND, 4.5 times higher year-on-year. The company has surpassed its full-year revenue plan by 25% and its pre-tax profit target by 188% in just three quarters.

As of September 30, 2025, DAP - VINACHEM's total assets reached 2,800 billion VND, up 24% from the beginning of the year. Term deposits surged to 1,500 billion VND, accounting for 54.4% of total assets, reflecting a solid financial foundation and strong cash flow generation from business operations.

Ninh Binh Phosphate Fertilizer Joint Stock Company (NIFERCO) profit Jumps Nearly 4-Fold

Besides the two leading companies in terms of scale, Ninh Binh Phosphate Fertilizer Joint Stock Company (NIFERCO) also recorded impressive growth, despite its smaller revenue size. In Q3/2025, NIFERCO achieved net revenue of 197.0 billion VND, an increase of nearly 8% year-on-year, while the cost of goods sold decreased by 4% to 144.0 billion VND, resulting in a gross profit of 52.0 billion VND, up 64%.

According to the company's explanation, both sales volume and selling prices increased sharply. Specifically, the selling price of powdered phosphate increased by 25% and NPK by 14%, significantly improving the profit margin. Financial revenue reached over 2.2 billion VND, 6.5 times higher year-on-year, thanks to bank deposit interest. Meanwhile, selling expenses decreased by 38% to 11 billion VND, although G&A expenses rose by 84% to 11 billion VND. As a result, NIFERCO's profit after tax was nearly 27.0 billion VND, 3.8 times higher than Q3/2024.

For the cumulative 9 months, the company recorded revenue of nearly 1,021 billion VND, up 35%, and profit after tax reached 94.0 billion VND, an increase of 181%, thereby exceeding its full-year profit plan by 84%. Total assets at the end of Q3 reached 419.0 billion VND, with cash and cash equivalents and deposits surging to nearly 236 billion VND, accounting for 56% of total assets, demonstrating a healthy financial status and good accumulation capability.

Ha Bac Nitrogenous Fertilizer and Chemical JSC Company (HANICHEMCO) Reports Loss Due to Deteriorating Equipment

In contrast to the three profit-making companies, Ha Bac Nitrogenous Fertilizer and Chemical JSC Company (HANICHEMCO) remained deeply in loss due to production disruptions. The Q3/2025 financial report showed the company incurred a loss after tax of nearly 96.0 billion VND, bringing the cumulative 9-month loss to 38.3 billion VND, despite net revenue reaching 2,995.8 billion VND.

According to the company's explanation, the factory faced production difficulties because some equipment was aging and required consolidation and replacement after many years of operation. Ha Bac Nitrogenous Fertilizer was forced to shut down the plant for an extended period for major overhaul and repair of the entire production line, including proprietary supplier equipment. The company also carried out renovations of the air separation unit and the gasification workshop, significantly reducing production time and resulting in lower output compared to the same period.

Although the global Urea market trended positively and selling prices increased, the sharp decline in production volume caused the company's revenue to fall. Financial costs in Q3 amounted to 39 billion VND, mainly interest expenses, while other profit was negative at more than 50.7 billion VND, leading to continued deep losses in business results.

As of September 30, 2025, Ha Bac Fertilizer's total assets reached 5,549.2 billion VND, a decrease of over 11% from the beginning of the year. Liabilities remained high at 4,969 billion VND, accounting for nearly 90% of total assets, including financial loan debt of over 2,420.7 billion VND. Owners' equity stood at 580.1 billion VND, decreasing in line with the accumulated loss.

The company stated that the plant shutdown for overhaul was a necessary step to ensure safe operation and long-term production stability, but in the short term, it sharply reduced the efficiency of production and business, while fixed and financial costs remained high.

Outlook

The Q3/2025 results show that the Vietnamese fertilizer industry is entering a phase of clear differentiation. Companies with modern technology, good governance capabilities, and proactive raw material sourcing like DAP - VINACHEM , NIFERCO, are benefiting from recovering selling prices and stable consumption demand. Conversely, units facing technological limitations and heavy debt burdens like HANICHEMCO continue to face significant challenges.