QNS Q3/2026 Net Profit VND 449.8B, Up 18.1% as Gross Margin Hits 35.4%

Overview

Duong Quang Ngai (QNS), the UPCOM-listed sugar, soy milk and beer producer behind the Fami brand, reported Q3/2026 net profit of nearly VND 449.8B, up 18.1% year on year, on net revenue of more than VND 3,073.2B (+14.5%). Gross margin widened to 35.4% from 32.4%, and nine-month net profit of VND 1,407.3B already equals 93.1% of the company’s VND 1,512B 2026 target.

Key Facts

• Q3/2026 net revenue: more than VND 3,073.2B, up 14.5% year on year.
• Q3/2026 gross profit: more than VND 1,086.4B, up 24.7%; gross margin 35.4% versus 32.4% a year earlier.
• Q3/2026 net profit: nearly VND 449.8B, up 18.1% year on year.
• Financial income: more than VND 157.4B, up 103.6%; net financial result up 90% despite higher interest expense.
• Nine-month 2026 revenue: more than VND 9,125.3B (+15.9%); net profit VND 1,407.3B (+6.7%), or 93.1% of the VND 1,512B plan.
• Nine-month operating cash flow: nearly VND 1,701B, up 13.9%; total assets VND 15,736.5B at 30 September 2026, of which cash and bank deposits were VND 8,926B (56.7%).
• Long-term work in progress rose to more than VND 773.9B from VND 53.2B, mainly VND 578.7B for the An Khe sugar plant capacity expansion to 25,000 TMN.

What Happened

In its consolidated Q3/2026 financial statements, Duong Quang Ngai attributed revenue growth to higher sales volumes across its core segments — soy milk, sugar and beer — alongside positive export growth in beer, milk and confectionery as the company widened its distribution network and improved channel execution. Gross profit rose 24.7% to more than VND 1,086.4B, outpacing the rise in cost of goods sold; management credited tighter production-cost control and operating-expense optimisation for the margin gain.

Financial income more than doubled to VND 157.4B. The company said borrowing costs rose year on year, but flexible cash-flow management and a suitable mix of deposit balances and tenors lifted the net financial result by 90%, a meaningful contributor to the bottom line. Offsetting factors included financial expenses rising to nearly VND 59.6B from VND 25.7B, selling expenses up 37.3% to nearly VND 574B, and general and administrative costs up 25.7% to more than VND 96.9B. The filing does not break out segment-level profit or the contribution of exports to total revenue.

Market Context

QNS trades on UPCOM and closed at VND 50,500 on 26 October 2026. The stock sits in the consumer staples and food and beverage sector, where investors typically weigh earnings durability against input-cost cycles in sugar and soybeans. The Q3 result extends a pattern of double-digit top-line growth, but nine-month net profit grew only 6.7% against 15.9% revenue growth, reflecting a weaker first half and heavier selling investment. The balance sheet remains unusually liquid, with cash and deposits at 56.7% of total assets, while total liabilities rose 33.7% from the start of the year.

Strategic Significance

The margin recovery is the core of the thesis: a 300-basis-point gross margin gain on a larger revenue base shows QNS is converting volume growth into profit rather than buying share through promotions, even as selling costs climbed 37.3%. The An Khe expansion to 25,000 TMN capacity signals a multi-year bet on sugar scale, funded from a cash pile that also generates the financial income now supporting earnings. The risk is that with 93.1% of the annual plan already booked after nine months, the fourth quarter offers little upside surprise and any softness in sugar prices, soy input costs or export demand would be read as a deceleration rather than a one-off.

What to Watch

• Q4/2026 and full-year 2026 results, including whether net profit exceeds the VND 1,512B plan and by how much.
• Segment disclosure on sugar, soy milk and beer volumes, and any detail on export revenue contribution.
• Progress and capex drawdown on the An Khe sugar plant expansion to 25,000 TMN.
• Movement in total liabilities, up 33.7% year to date, and the interest-cost trajectory behind the higher financial expenses.
• Sugar and soybean input price trends, plus any changes to Vietnam’s sugar import and trade-remedy policy.