Casumina (CSM) Posts Worst Quarter in 61 Quarters With VND 33.5B Q3 Loss

Overview

Công ty CP Công nghiệp Cao su Miền Nam (Casumina, ticker CSM on HOSE) reported a Q3/2026 net loss of VND 33.5 billion, its heaviest quarterly loss in 61 quarters of available data, against a VND 26.6 billion profit in the same period last year. Revenue rose nearly 10% to VND 1,129 billion, but cost of goods sold, selling expenses and interest costs all outpaced top-line growth, leaving nine-month profit down 74% at VND 15.9 billion.

Key Facts

• Q3/2026 net revenue of VND 1,129 billion, up almost 10% year on year; cost of goods sold rose 14% to VND 1,022 billion.
• Gross profit fell 18.3% to VND 106.7 billion, with gross margin narrowing from 12.7% to 9.4%.
• Selling expenses more than doubled, from VND 28.1 billion to VND 56.4 billion, an increase of about VND 28.2 billion.
• Interest expense reached VND 34.2 billion, up 82.5%; financial expenses rose 109.2% to VND 46.6 billion while financial income fell 81% to VND 2.1 billion.
• The company recorded 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.
• Nine-month 2026 revenue was VND 3,382 billion (+7.2%) with net profit of VND 15.9 billion, down 74% from VND 61.6 billion.
• At 30 September 2026, cash and equivalents had fallen 77% to roughly VND 132 billion from VND 575 billion at the start of the year, while short-term receivables rose 64% to VND 1,098 billion.

What Happened

According to the Q3/2026 financial statements and the company’s written explanation, Casumina’s revenue growth was overwhelmed by cost inflation across the income statement. Cost of goods sold climbed 14%, faster than the near-10% revenue increase, compressing gross margin by 3.3 percentage points. Financial expenses more than doubled, which the company attributed mainly to higher loan interest and payment discounts, while selling expenses jumped by roughly VND 28.2 billion year on year.

The result was a VND 57.3 billion loss from core operations, only partly offset by VND 23.8 billion of other income, leaving a VND 33.5 billion net loss. That exceeds the roughly VND 28 billion loss booked in Q3/2021, the first loss-making quarter after Casumina listed on HoSE in 2009. The company also flagged a near fourfold increase in long-term borrowings, and the balance sheet shows liquidity thinning: cash down 77% since the start of the year against a 64% rise in short-term receivables.

Market Context

CSM closed at VND 12,050 on 19 October 2026 on HOSE. The stock sits in the rubber and tyre manufacturing segment, where input costs and financing charges have weighed on margins across the sector. The swing to a quarterly loss, combined with the sharp decline in cash and the build in receivables, arrives as the broader Vietnamese market remains sensitive to interest-rate conditions and to corporate earnings quality; a tyre maker with rising leverage and compressed margins is exposed on both fronts.

Strategic Significance

The core issue for long-term holders is not the one-off other income that softened the headline loss, but the operating loss of VND 57.3 billion, which shows that Casumina’s pricing power is not keeping pace with input and distribution costs. Selling expenses doubling suggests the company is spending more to defend volume, a costly strategy if it persists. The near fourfold rise in long-term debt raises the fixed-cost base precisely when interest expense is already up 82.5%, so any further rate pressure or demand slowdown would compound the earnings drag. The 74% nine-month profit decline also puts full-year targets and dividend capacity in question.

What to Watch

• The Q4/2026 financial statements, to see whether selling expenses and interest costs normalise or remain elevated.
• Any company disclosure on full-year 2026 profit targets and whether they are revised.
• Long-term borrowing terms and maturity schedule, given the near fourfold increase in debt.
• Collection of the VND 1,098 billion in short-term receivables, particularly the VND 706.3 billion due from customers.
• Raw material input prices, especially natural and synthetic rubber, which drive cost of goods sold.