A lifeline for DPM

In the fourth quarter of 2025, DPM’s domestic business operations may continue to face negative impacts from flooding.

Growth driven by exports

DPM has just released its financial statements for the third quarter of 2025, with revenue of more than VND 3,728 billion, up 21%, and after-tax profit of over VND 238 billion, a surge of 275% year-on-year. Cumulatively in the first nine months of 2025, DPM recorded revenue of VND 13,150 billion, up 27%, and after-tax profit of VND 863 billion, an increase of 51.4% compared with the same period last year.

According to DPM’s Management Board, this growth was driven by the company’s push to expand the business of its key products, resulting in strong revenue and profit growth from a low base last year. While domestic fertilizer demand has shown signs of slowing, export activities surged by as much as 150%. Accordingly, the average selling price of urea increased by nearly 30% year-on-year, contributing to DPM’s outstanding business performance.

Coupled with the advantage of entering the year-end peak season, as demand remains high while supply from the Chinese market continues to be tightened, urea and NPK fertilizer prices are expected to stay elevated, supporting strong growth in DPM’s business results. This is expected to have a positive impact on DPM’s performance in 2026.

It is noted that in 2025, DPM set targets of VND 12,876 billion in revenue and VND 320 billion in after-tax profit. Accordingly, DPM had already achieved its full-year revenue target and exceeded its profit target by as much as 270% after just nine months of 2025.

Business challenges

The International Fertilizer Association predicts that over the 2026–2030 timeframe, the world's fertilizer demand will continue to rise at an annual rate of about 1%–2%. It is anticipated that consumption would surpass the record level of 201 million tons in 2020 and approach 250 million tons in 2026. In the meanwhile, major exporting nations like China and Russia continue to impose quotas to regulate fertilizer prices, which puts pressure on the world's fertilizer supply. This gives Vietnamese fertilizer manufacturers, like DPM, the chance to increase their export markets. DPM delivered 45,000 tons of urea to India in the third quarter of 2025 alone, the highest shipping value this year. This represents a significant accomplishment in the company's plan to boost exports to foreign markets.

According to DSC’s assessment, the outlook for fertilizer selling prices remains positive and DPM’s export segment is likely to stay at a high level in the near term, while input costs are trending downward. Specifically, the average price of fuel oil (FO) in the third quarter of 2025 fell by 14.3% and is expected to remain relatively stable as OPEC increases output to stabilize the energy market. In this context, DSC expects DPM’s revenue and profit to maintain stable growth in 2026.

However, DSC warns that plant maintenance and floods may have an impact on DPM in the fourth quarter of 2025. In comparison to the same time last year, urea and NPK output may decrease towards the end of this year. In the South Central and Central Highlands areas, severe rains and flooding caused home demand to halt, resulting in a 19% decrease in domestic urea usage. Given that planting efforts are anticipated to be postponed owing to storms and excessive rainfall, it is quite possible that DPM's fourth-quarter 2025 business performance would be impacted. As a result, DPM may find it difficult to reach its goals for sales and profit in the fourth quarter of 2025.