Ho Chi Minh City Book Distribution Joint Stock Company (Fahasa, code FHS) has just announced its consolidated financial report for the third quarter with not very positive results in the context of the general weakening of the economy's purchasing power.
However, it is worth noting that financial revenue doubled compared to the same period to VND7 billion, all coming from interest on bank deposits and loans. This is thanks to the company continuously increasing its deposits in banks, reaching a record high of VND460 billion at the end of the last period.
As a result, Fahasa recorded pre-tax profit of only nearly VND19 billion, 20% lower than the same period last year. After-tax profit also decreased accordingly to VND15 billion.
In the last quarter, the largest bookstore chain in the South recorded flat sales revenue compared to the same period last year at VND1,430 billion. Lower cost of goods and fewer returns helped gross profit increase slightly to VND344 billion, corresponding to a gross profit margin of nearly 24%.
Gross profit margin improved but operating expenses increased sharply, "eating up" almost all profits. Of which, selling expenses accounted for a large proportion of about VND 298 billion (an increase of 11% compared to the third quarter of 2022) and followed by business management expenses of nearly VND 35 billion.
However, thanks to good results at the beginning of the year, this bookstore owner recorded a slight increase in cumulative sales revenue for the first 9 months to VND3,261 billion. Pre-tax profit increased by nearly 20% to nearly VND47 billion (this figure was contributed by more than VND17 billion in bank deposit interest).
According to the plan set for 2023, Fahasa shareholders agreed to the target of VND4,000 billion in revenue and VND50 billion in pre-tax profit. Thus, the company has achieved 82% of the revenue target and 94% of the profit target.
Total assets have seen rapid expansion in recent quarters, reaching nearly VND1,745 billion, 35% higher than at the beginning of the year. The rapid increase in assets was mainly due to an increase in bank deposits, an increase in customer receivables, and an increase in inventories.
While many businesses are thirsty for cash, Fahasa is still doing well with a total balance of cash and cash equivalents, and term bank deposits of about VND514 billion, accounting for 30% of total assets at the end of the last quarter.
The book company's liabilities are over VND1,560 billion, mainly from short-term payables to sellers of VND1,335 billion, up 30% compared to the beginning of the year. Fahasa continues to maintain a prudent business policy with no financial debt since the company publicly disclosed its financial statements.
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