Hoa Sen Group Joint Stock Company (HOSE: HSG) has just announced its consolidated financial statements for the first quarter of the 2023 - 2024 fiscal year (FY) (from October 1, 2023 - December 31, 2023).
Accordingly, in the first quarter of fiscal year 2023 - 2024, consolidated revenue reached VND 9,073 billion, consolidated profit after tax reached VND 103 billion.
HSG's consolidated business results for the first quarter of fiscal year 2023 - 2024 (billion VND).
According to the recently announced consolidated financial report for the first quarter of the fiscal year 2023 - 2024, HSG has recorded an impressive recovery compared to the first quarter of the fiscal year 2022 - 2023 when all indicators were better than the same period.
Specifically, although the economy has not fully recovered, HSG still recorded revenue of VND 9,703 billion, up 15% over the same period. In particular, HSG's gross profit margin has strongly recovered from 2% in the first quarter of the 2022-2023 fiscal year to 11% in the first quarter of the 2023-2024 fiscal year, helping the gross profit reach VND 960 billion in the first quarter of the 2023-2024 fiscal year, up 5 times over the same period.
Chart of gross profit (billion VND) (left column) and gross profit margin (%) (right column) of HSG in 5 consecutive quarters.
In addition to the strong recovery of gross profit margin, the sharp decrease in financial expenses is also a notable bright spot for HSG when financial expenses, including interest expenses and exchange rate differences, decreased by 56%, from VND 114 billion in the first quarter of the 2022-2023 fiscal year to VND 50 billion in the first quarter of the 2023-2024 fiscal year. Specifically as follows:
Interest expense decreased by 47%, from VND48 billion to VND25 billion due to HSG's efforts in negotiating with banks to get the best interest rates for production and business activities.
HSG has recorded an impressive recovery compared to the first quarter of FY2022 - 2023 when all indicators were better than the same period.
Exchange rate difference costs decreased by 63%, from VND 65 billion in the first quarter of FY 2022 - 2023 to VND 24 billion in the first quarter of FY 2023 - 2024. Exchange rate difference costs are recorded as losses due to exchange rate differences from import-export activities and settlement of outstanding USD loans. In the first quarter of FY 2023 - 2024, HSG maintained no USD loans, so even though the USD/VND exchange rate fluctuated, it did not heavily affect exchange rate difference costs. Therefore, the main reason affecting exchange rate difference costs is from importing raw materials and exporting.
In contrast, financial revenue is revenue recorded due to exchange rate differences from import-export activities, deposit interest, and other financial activities of HSG. In the first quarter of the 2023-2024 fiscal year, financial revenue increased by 37% over the same period, from VND 32 billion to VND 44 billion, mainly due to exchange rate differences from HSG's export activities. Export revenue in the first quarter of the 2023-2024 fiscal year accounted for 43% of total revenue and increased by 10% over the same period.
HSG's financial cost chart for 5 consecutive quarters.
Thanks to the combination of the above factors, HSG's after-tax profit also improved positively from VND (680) billion in the first quarter of the 2022-2023 fiscal year to VND 103 billion in the first quarter of the 2022-2024 fiscal year.
HSG said that in the coming time, it will continue to focus on enhancing the operational efficiency of the production system, distribution system, and warehouses nationwide; maintaining and expanding export channels and product portfolios; focusing on consolidating internal strength and accumulating resources to make the most of market opportunities...
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