FMC Maintains 10.2% Tax Provisions Amid US Tariff Risk as 2025 Revenue Rises 18%, Net Profit Drops After Audit

FMC’s audited consolidated financial statements for 2025 show net revenue of VND 8,185 billion, up 18% year-on-year. However, audited consolidated net profit reached VND 386 billion, equivalent to 91% of the prior year. Compared with the company’s self-proclaimed figures, post-audit net profit fell by 7.3% (more than VND 30 billion). At the parent-company level, net profit was also adjusted down by 4.7%, from VND 366 billion to VND 349 billion.

Standalone results: revenue growth, profit still below prior estimates

In the standalone report, the parent company recorded net revenue of VND 5,473 billion, up 12%. Net profit was about VND 349 billion, up 68% versus 2024. Despite the strong year-on-year increase, this figure was still 0.8% lower than the company’s previously prepared standalone report.

Provisioning decision tied to anti-dumping duties and tariff uncertainty

The company attributed the lower post-audit profit to management’s approach to provisioning for anti-dumping duties, describing it as a cautious move ahead of POR20 and upcoming tariff policies.

On February 17, 2026, the U.S. Department of Commerce (DOC) announced final results for the 19th administrative review (POR19), imposing a 4.6% tariff on FMC. Contrary to market expectations of a large provision reversal based on this tariff, FMC decided not to apply the 4.6% rate to all provisions.

FMC’s Management Board said the 4.6% tariff does not fully reflect the risk profile for future reviews. The company is currently a mandatory respondent in POR20 and could remain in that position for POR21.

According to FMC, the key lesson from POR19 was that DOC used an adverse data method (AFA) to depress penalties for other mandatory respondents due to data verification gaps. To protect financial safety, FMC chose to provision at an anticipated tax rate of 10.2%, calculated from a historical ceiling of 10.5% minus export subsidies of 0.3%.

U.S. tariff environment remains volatile despite legal setbacks

FMC’s annual report also highlights the ongoing impact of U.S. geopolitical and policy developments on its market. In 2025, U.S. tariff policy responses continued to change through presidential executive orders, with tariffs ranging from 10% to 20% and a proposed 46% rate.

Although the U.S. Supreme Court rejected some tariff measures in February 2026, FMC still considers the trading environment high-risk and volatile. The company said this assessment supports maintaining reserve capacity rather than recognizing a short-term profit surge.

2026 outlook: revenue target, profit plan, and dividend policy

For 2026, FMC’s annual general meeting documentation sets targets of consolidated net revenue of VND 8,000 billion and consolidated pre-tax profit of VND 452 billion. Compared with 2025 revenue of VND 8,185 billion, the revenue plan is slightly lower, reflecting a cautious outlook.

Despite the lower post-audit profits, FMC plans to keep shareholder remuneration stable. The Board proposed a 2025 cash dividend of 20% (equivalent to 2,000 VND per share). For 2026, the company expects a minimum cash dividend of 20%.

FMC plans to hold its 2026 annual general meeting on the afternoon of April 17, 2026 in Can Tho to approve the above matters.