Becamex IDC (BCM) pays cash dividend at 8% rate
Becamex IDC Investment and Industrial Development Corporation (Code: BCM) has just approved a plan to pay cash dividends at a rate of 8%. Accordingly, each shareholder owning 1 share will receive a dividend of 800 VND.
There are currently 1,035 million BCM shares in circulation on the market. Thus, it is expected that BCM will have to spend about VND 828 billion to pay dividends. The expected dividend payment date will be December 29, 2023.
Becamex IDC (BCM) has negative cash flow of more than VND 2,200 billion from business activities, 9-month profit also plummeted nearly 85% (Photo TL)
In addition, Becamex IDC also listed shareholders to get opinions on amending and supplementing the business operation date and the Charter of organization and operation, along with other issues of the General Meeting of Shareholders.
Becamex IDC's dividend plan comes as the company is witnessing declining business results. The after-tax profit achieved after the first 9 months of 2023 is not very positive. The company has not yet achieved the progress as per the business target set at the beginning of the year.
Profit in the first 9 months of the year decreased by 85%
Regarding the business situation in the third quarter of 2023, Becamex IDC achieved revenue of VND 1,127.3 billion, down nearly half compared to the same period last year. However, the sharp decrease in cost of goods sold caused gross profit to still grow, reaching VND 728.4 billion. Gross profit margin is equivalent to 64.6%.
Financial revenue in the period decreased to VND6.8 billion while financial expenses increased. The majority of which was interest expense, accounting for VND149.2 billion. Selling expenses and administrative expenses both increased, accounting for VND181.7 billion and VND140.9 billion, respectively.
After deducting all expenses and corporate income tax, Becamex IDC's remaining after-tax profit reached VND215.6 billion, down 16.8% over the same period.
Although Q3 profits recovered thanks to lower cost of goods sold, the first nine months of the year still could not offset the poor results in Q1 and Q2.
Becamex IDC's accumulated revenue in the first 9 months of the year reached VND3,012.4 billion, down 46.4%. Profit after tax reached VND264.5 billion, down 85% over the same period. Compared to the business target set at the beginning of 2023, BCM has only completed 32% of the revenue plan and 11.7% of the annual profit plan.
Cash plummets, debt increases by thousands of billions of dong
At the end of the third quarter, Becamex IDC's asset structure changed significantly. Of which, cash and cash equivalents decreased by nearly half, down to only VND593.3 billion. The amount of bank deposits also decreased from VND436.5 billion to VND265.3 billion.
Short-term receivables currently account for VND5,276.5 billion, inventories account for VND22,165.5 billion. The company is having to make a provision for inventory price reduction of VND1,365.5 billion.
Regarding capital structure, Becamex IDC's short-term debt ratio increased sharply during the period, from VND4,950.7 billion to VND5,923.5 billion, equivalent to an increase of nearly VND1,000 billion in just the first 9 months of the year. Long-term debt also tended to increase from VND10,923.7 billion to VND11,262.5 billion.
Owner's equity currently accounts for VND 17,973.1 billion with owner's contributed capital accounting for VND 10,350 billion. The company currently has VND 4,831.5 billion in undistributed profit after tax.
Another notable point is that in the first 9 months of the year, Becamex IDC's net cash flow from operating activities was negative by VND2,213.7 billion. Meanwhile, net cash flow from financial activities increased by VND1,283.9 billion with VND4,458.2 billion in cash received from borrowing activities, showing that the company is having to increase borrowing to compensate for the shortage in cash flow.
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