Casumina (CSM) Posts Worst Quarterly Loss in 61 Quarters as Costs Surge

Overview

Casumina (ticker CSM, HOSE) reported a Q3/2026 after-tax loss of VND 33.5 billion, reversing a VND 26.6 billion profit in the same period last year and marking its heaviest quarterly loss in 61 quarters of data. The tire and tube maker attributed the swing to rising input costs, higher financial expenses and a sharp jump in selling costs, which overwhelmed nearly 10% revenue growth. Nine-month after-tax profit fell 74% year on year to VND 15.9 billion.

Key Facts

• Q3/2026 net revenue reached VND 1,129 billion, up nearly 10% year on year, but cost of goods sold rose 14% to VND 1,022 billion.
• Gross profit fell 18.3% to VND 106.7 billion, and gross margin narrowed to 9.4% from 12.7%.
• Financial expenses rose 109.2% to VND 46.6 billion, of which interest expense was VND 34.2 billion, up 82.5%; financial income fell 81% to VND 2.1 billion.
• Selling expenses more than doubled to VND 56.4 billion from VND 28.1 billion, while general and administrative costs rose 4.3% to VND 63.1 billion.
• The company posted an operating loss of VND 57.3 billion versus a VND 30.9 billion operating profit a year earlier; other income of VND 23.8 billion narrowed the net loss.
• 9M/2026 net revenue was VND 3,382 billion (+7.2%), with after-tax profit of VND 15.9 billion, down 74% from VND 61.6 billion.
• At 30 September 2026, total assets were VND 3,961 billion (+3.6% year to date), short-term receivables rose 64% to VND 1,098 billion, and cash fell 77% to about VND 132 billion.

What Happened

In its Q3/2026 financial statements, Công ty CP Công nghiệp Cao su Miền Nam (Casumina) reported net revenue of VND 1,129 billion, up nearly 10% year on year. Cost of goods sold grew faster, rising 14% to VND 1,022 billion, which pulled gross profit down 18.3% to VND 106.7 billion and compressed the gross margin from 12.7% to 9.4%. In its explanation filing, the company said raw material costs rose about 7.5% while selling prices were held flat, eroding profitability relative to the prior-year quarter.

Financial and selling costs compounded the pressure. Financial expenses more than doubled to VND 46.6 billion, with interest expense at VND 34.2 billion, which Casumina attributed to higher bank interest rates and increased payment discounts. Selling expenses jumped to VND 56.4 billion from VND 28.1 billion, an increase of roughly VND 28.2 billion. The company recorded an operating loss of VND 57.3 billion against a VND 30.9 billion operating profit a year earlier; other income of VND 23.8 billion trimmed but did not offset the shortfall, leaving an after-tax loss of VND 33.5 billion. According to the 61-quarter data series cited, this is the company’s deepest quarterly loss, exceeding the roughly VND 28 billion loss booked in Q3/2021, its first loss-making quarter after listing on HoSE in 2009.

Market Context

CSM closed at VND 12,100 on 20 October 2026 on HOSE. The stock sits in the rubber and tire segment of the automobiles and parts sector, where input costs are tied to natural rubber and synthetic feedstock prices and where pricing power is constrained by competition from imported tires. The Q3 result breaks a run of modest profitability and arrives as higher interest rates raise the cost of the company’s working capital. The weak earnings print contrasts with the broader Vietnamese market’s focus on earnings quality into the 2026 reporting season, and the 64% jump in short-term receivables alongside a 77% decline in cash points to tightening liquidity that investors will weigh against the headline loss.

Strategic Significance

The core issue for long-term holders is margin structure rather than volume: revenue is still growing, but Casumina could not pass through a 7.5% raw material increase, so operating leverage worked against it. A 9.4% gross margin leaves little buffer for interest expense that has nearly doubled, meaning the balance sheet, not the top line, now drives earnings. The build in receivables and the drawdown in cash suggest the company is financing customers and inventory at precisely the moment borrowing costs are rising, a combination that can persist beyond a single quarter. Whether Casumina can restore pricing discipline or renegotiate its debt profile will determine if Q3 is an outlier or the start of a lower earnings base.

What to Watch

• Q4/2026 financial statements, expected in late January 2027, to show whether gross margin recovers above 10%.
• Natural rubber and feedstock price trends, given the company’s stated inability to raise selling prices.
• Short-term receivables and cash balances at year-end 2026, after the 64% receivables increase and 77% cash decline.
• Any disclosure on borrowing costs or debt restructuring following the 82.5% rise in interest expense.
• Management commentary on pricing strategy and selling-expense drivers after the VND 28.2 billion year-on-year increase.