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BMP reported a strong Q1 2025 performance, surpassing our expectations across both top- and bottom-line metrics:
- Net revenue: VND1,383bn (USD54.2mn; +31% QoQ, +38% YoY; 27% of our full-year forecast).
- NPAT-MI: VND287bn (USD11.3mn; +24% QoQ, +51% YoY; 28% of our full-year forecast).
- We see upside potential to our forecasts for BMP, given the stronger-than-expected Q1 results.
- We note that our current forecasts have not reflected the impact of the US reciprocal tariff. However, we expect no material changes to our forecasts for BMP from this tariff as (1) BMP’s sales are 100% exposed to the southern market, and (2) any potential real estate demand decline (due to weaker purchasing power) should also be offset by weaker input prices (driven by the US-China trade war that will put pressure on the recovery of the Chinese economy).
Top-line acceleration on promotional push: Q1 2025 revenue surged 31% QoQ and 38% YoY, driven by a sharp increase in total discounts (+83% QoQ, +33% YoY), with discount/sales rising to 15.1%, well above our full-year forecast of 12.9%. We consider this result strong as Q1 is typically the low season.
Resilient EBIT margin despite aggressive promotions: In Q1 2025, BMP delivered an EBIT margin of 27.2%, a modest decline from the Q4 2024 high of 28.1%, yet a notable improvement from 24.5% in Q1 2024. Although the QoQ decline reflects increased promotional activity, we view the margin performance as resilient, especially given the sharp rise in total discounts/sales - which surged by 4.3 percentage points (% pts). Meanwhile, EBIT margin only slipped by 0.9% pts QoQ, mainly supported by (1) a stable GPM of 42.7% due to favorable input prices, and more importantly, (2) effective SG&A cost management, with normalized SG&A/sales (SG&A excluding trade discounts) falling 3.4% pts QoQ. This improvement was mainly driven by a 60% QoQ reduction in packaging and outsourcing expenses (~50% of normalized SG&A in Q4 2024), and the surge in revenue. On a YoY basis, EBIT margin expanded by 2.7% pts, underpinned by consistently strong GPM, a lower discount/sales ratio, and enhanced cost efficiency in normalized SG&A.
BMP’s Q1 2025 results
VND bn | Q1 2024 | Q4 2024 | Q1 2025 | QoQ | YoY | 2025F | Q1 2025 / 2025F |
Net revenue | 1,003 | 1,053 | 1,383 | 31% | 38% | 5,114 | 27% |
Gross profit | 425 | 452 | 590 | 31% | 39% | 2,187 | 27% |
SG&A expense | -179 | -156 | -214 | 38% | 20% | -831 | 26% |
Operating profit | 246 | 296 | 376 | 27% | 53% | 1,357 | 28% |
- Financial income | 19 | 23 | 21 | -6% | 11% | 77 | 28% |
- Financial expenses (Fin. Exp.) | -28 | -30 | -40 | 33% | 41% | -134 | 30% |
Net other income/loss | 0 | 2 | 1 | -27% | 177% | 1 | 262% |
EBT | 237 | 291 | 359 | 23% | 51% | 1,300 | 28% |
NPAT-MI | 190 | 231 | 287 | 24% | 51% | 1,040 | 28% |
SG&A breakdown |
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Total | 179 | 156 | 214 | 38% | 20% | 831 | 26% |
- Trade discounts | 114 | 67 | 144 | 115% | 26% | 513 | 28% |
- Normalized SG&A* | 65 | 88 | 70 | -21% | 8% | 318 | 22% |
Discounts** |
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Total | 157 | 114 | 209 | 83% | 33% | 662 | 32% |
- Trade discount (SG&A) | 114 | 67 | 144 | 115% | 26% | 513 | 28% |
- Payment discount (Fin. Exp.) | 28 | 29 | 40 | 37% | 44% | 134 | 30% |
- Revenue discount | 15 | 18 | 25 | 41% | 67% | 15 | 164% |
Discounts / sales |
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Total | 15.7% | 10.8% | 15.1% |
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| 12.9% |
|
- Trade discount (SG&A) | 11.4% | 6.4% | 10.4% |
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| 10.0% |
|
- Payment discount (Fin. Exp.) | 2.8% | 2.7% | 2.9% |
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| 2.6% |
|
- Revenue discount | 1.5% | 1.7% | 1.8% |
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| 0.3% |
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Margins |
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GPM | 42.4% | 42.9% | 42.7% |
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| 42.8% |
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SG&A/Sales | 17.8% | 14.8% | 15.5% |
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| 16.2% |
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Normalized SG&A/Sales | 6.5% | 8.4% | 5.0% |
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| 6.2% |
|
EBIT margin | 24.5% | 28.1% | 27.2% |
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| 26.5% |
|
NPM | 18.9% | 21.9% | 20.7% |
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| 20.3% |
|
Source: BMP, Vietcap. *Normalized SG&A is SG&A expenses excluding trade discount. **Total discounts equals the sum of trade discounts, payment discounts, and revenue discount.
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