Son La Sugar sees profits plummet 29% in 2025 amid market oversupply

Son La Sugar Joint Stock Company's net profit after tax for the fiscal year 2024-2025 decreased by VND 152.1 billion to VND 374.2 billion, a 29% decline compared to VND 526.3 billion in the previous fiscal year. This reduction is attributed to an oversupply in the domestic sugar market, a significant decrease in demand, and the impact of smuggling, which led to a considerable drop in sugar product selling prices and a reduction in gross profit margin.

The company's total assets as of June 30, 2025, increased to VND 2.08 trillion from VND 1.69 trillion in the previous year. Current liabilities significantly rose to VND 355.9 billion from VND 140.9 billion, driven by an increase in short-term loans and finance lease liabilities. Cash and cash equivalents, however, decreased from VND 18.5 billion to VND 3.2 billion.

Basic earnings per share also fell to VND 37,756 from VND 53,295 in the prior year. The company announced dividends of VND 195.8 billion to shareholders, equivalent to 200% of its charter capital.