November 14, 2023
HANOI – Less positive business results in the nine months of 2023 have caused many businesses to lower their whole year’s target, with some even expecting losses.
The general picture of business results showed that the headwind of global economic recession has significantly affected the Vietnamese macro situation and the business environment.
Most pillar industries, such as bank, real estate, construction materials, fertilisers and exports, continue to struggle and even face negative business performances, leading some to promptly adjust the yearly business plans to match reality.
In particular, the seafood exporter Sao Ta Food JSC has decided to lower its 2023 business plan after announcing its third quarter financial statements.
The company adjusted its total revenue target to VNĐ4.87 trillion (US$200 million), down 25 per cent from the previous forecast, while profit after tax decreased by 25 per cent to VNĐ300 billion.
Sao Ta did not detail the reason and said that the adjustment will be presented in the latest General Meeting of Shareholders report.
Similarly, Việt Nam National Textile & Garment Group (Vinatex) plans to lower its 2023 revenue target from VNĐ17.5 trillion to VNĐ16.5 trillion, a decrease of 6 per cent. Its profit before tax target was adjusted down to VNĐ370 billion from VNĐ610 billion, equivalent to a fall of 39 per cent.
The change in financial results of the textile producer reflects a less bright picture in 2023. After nine months, Vinatex posted a net revenue of nearly VNĐ12.2 trillion and profit after tax of over VNĐ197.8 billion, a decrease of 14.08 per cent and 81.6 per cent year-on-year, respectively. Net profit reached about VNĐ37 billion, down 94 per cent.
With the new plan submitted to shareholders, Vinatex achieved 70 per cent of the revenue target and 78 per cent of the year’s profit plan.
In the steel industry, after recording consecutive losses, Vietnam Steel Corporation (VNSteel) also asked shareholders to adjust the production and business plan for 2023, reducing its profit before tax expectation to VNĐ1 billion from VNĐ52 billion. Meanwhile, others remained unchanged.
The steel producer had recorded great losses in the last two quarters.
The actual situation at VNSteel is not too positive with heavy losses in the last two quarters. In the consolidated report, the company’s net revenue declined 7 per cent from last year to more than 7.9 trillion in the third quarter of 2023. As a result, VNSteel reported a loss of VNĐ172 billion during the period.
Based on the actual situation of the market in the first ten months of the year, Danameco Medical SJC (DNM) adjusted the business plan for the whole year 2023.
Specifically, revenue was reduced by 23 per cent from the previous expectation to VNĐ269 billion. Notably, DMN forecasts a loss of nearly VNĐ42 billion, while the previous plan still had a profit of nearly VNĐ18 billion.
The company’s Board of Directors said that it will report the adjustments of the 2023 business plan and the development of a 2024 business plan at the next General Meeting of Shareholders.
Danameco used to be the only medical mask exporter on the stock exchange. Given this advantage, the company reported a record profit after tax of more than VNĐ37 billion in 2020 when COVID-19 outbreaks boosted demand for medical equipment.
However, right after the pandemic was controlled, Danameco’s business results reversed, to fall sharply. In 2022, the company lost VNĐ100 billion.
In the first half of 2023, the company saw a net revenue of more than VNĐ120 billion, down 6 per cent from the same period last year, and lost more than VNĐ39 billion.
As a result, as of June 30, Danameco had an accumulated losses of nearly VNĐ118 billion, with equity less than VNĐ5 billion.
After sliding 15 per cent and 40 per cent on-year in net revenue and profit after tax in the nine months of 2023, respectively, Dry Cell and Storage Battery (Pinaco) set a revenue of VNĐ991 billion and profit before tax of VNĐ44 billion in the fourth quarter.
Moreover, Pinaco also reduced the 2023 revenue and profit before tax targets to VNĐ3.6 trillion and VNĐ145 billion, respectively, down 5 per cent and 27 per cent from the previous plan.
With the new plan, the company has completed 72 per cent and 71 per cent of the revenue and profit plans, respectively.
Recently, Petrolimex Petrochemical Corporation also lowered this year’s revenue and profit after tax plans by 6 per cent and 30 per cent from the previous expectation.