Hoa Phat's 9-month profit is the lowest in 8 years

Hoa Phat 's third-quarter profit increased sharply compared to the same period last year, but not enough to lift the nine-month result, which is still the lowest since 2016.

Hoa Phat Group has just announced its third quarter business results, with revenue of nearly VND28,800 billion, down 16%. After-tax profit was recorded at VND2,000 billion, a sharp increase compared to the loss of nearly VND1,800 billion in the same period last year and up 38% compared to the second quarter of this year.

In the first 9 months, Hoa Phat achieved VND85,430 billion in revenue, down 27% compared to the same period last year. After-tax profit was recorded at VND3,830 billion, down more than 60% and equivalent to 48% of the yearly plan. The growth momentum in the third quarter showed a more positive business performance of the "steel king", however, the 9-month profit was still the lowest since 2016.

According to Hoa Phat, the price level of raw materials in the third quarter remained stable while sales volume gradually improved each quarter. Sales of steel products in the third quarter increased by 12% compared to the second quarter and 24% compared to the first quarter of the year. In addition, maintaining low inventory management helped improve profit margins in the last quarter.

In the first 9 months, the "steel king" produced 4.8 million tons of crude steel, down 21% compared to the same period last year. Sales of all types of steel (excluding steel pipes and galvanized steel) reached 4.6 million tons, down 19%.

Hoa Phat's construction steel and high-quality steel recorded 2.57 million tons in 9 months, down 25%. Of which, the export market contributed nearly 490,000 tons. HRC products reached nearly 2 million tons, down 3%. In addition, Hoa Phat also supplied the market with 488,000 tons of steel pipes and 240,000 tons of galvanized steel of all kinds.

Also according to Hoa Phat, as of the third quarter, this enterprise continued to lead the market share of construction steel and steel pipes in Vietnam, with 33.3% and 27.3% of the total market share, respectively.

Hoa Phat started supplying container shell products to the market in early August. Also in this month, the group put the first berth of the general container port in Dung Quat ( Quang Ngai ) into operation.

With household appliances, this group has launched new products such as large freezers, washing machines, water dispensers, and water filters. For the agricultural sector, Hoa Phat optimizes the scale and efficiency of investment in animal feed factories and livestock farms. Hoa Phat also continues to invest in expanding existing industrial parks in Hung Yen and Ha Nam.

Assessing the market outlook, Hoa Phat said the market may gradually improve but not much because the domestic and foreign economies are still facing many difficulties. The Group prioritizes good inventory management and regulating production and business in accordance with the situation. At the same time, Hoa Phat said it will closely follow the investment progress of major projects, especially the Dung Quat 2 Iron and Steel Complex.

Minh Son

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