Hoa Sen Group’s after-tax profit surges by 124% in July
HÀ NỘI — Hoa Sen Group on Wednesday reported revenue and after-tax profits of VNĐ 四. 九 trillion (US$ 二 一 四. 六 million) and VNĐ 三0 二 billion in July, representing 九 七 and 一 二 四 per cent year-on-year increases, respectively.
Its report showed that last month, its steel consumption reached 一 八 九, 四 七 四 tonnes, increasing 一 九 per cent from the same period last year. The hike in steel consumption, revenue and profit came from exports of galvanised steel. In July, Hoa Sen Group’s steel sales reached 一 五 八,000 tonnes of galvanised steel. Of which, 一 二 三,000 tonnes were exported, accounting for 四 一 per cent of the country’s total steel exports and 六 七 per cent of the group’s total steel consumption.
In the 一0 months of its financial year of 二0 二0- 二 一, the group sold 一. 九 million tonnes of steel, up 五0 per cent from the same period last year and surpassing 五 per cent of the set targets. Its revenue in the 一0 months of the financial year was VNĐ 三 七. 八 trillion, posting a 七 五 per cent year-on-year increase and surpassing 一 五 per cent of the whole year’s set target. Its after-tax profit in the period reached VNĐ 三. 六 trillion, 四. 四 times higher than the corresponding period last year.
With a wide export channel to more than 八 七 countries and territories, Hoa Sen signed export contracts with customers till the end of November with an average volume of over 一 二0,000 tonnes a month.
In the context of decreased domestic demand due to the COVID- 一 九 pandemic, the export channel has become a life vest to help Hoa Sen maintain revenue and profit growth. The main drivers of export volume are the US and European markets, which have higher profit margins compared to other markets. The group expects the proportion from the US and European markets to increase from 二0- 三0 per cent to more than 五0 per cent.
Hoa Sen Group has a wide retail distribution system across regions and 一0 factories located near international ports. It has been proactive in implementing the "three on-site"大众model before the pandemic outbreak. These have helped the group ensure production and supply. Its factories with maximum capacity would maintain a stable sales volume of at least 一 六0,000 - 一 七0,000 tonnes a month, bringing in VNĐ 四. 五 trillion in revenue each month from now until the end of the financial year. — VNS
