Profits hit 7-year low
After the Covid-19 pandemic, many businesses have had impressive recoveries, but in the field of exploitation, processing, and export of wood products and construction stone materials, Phu Tai Joint Stock Company (PTB) is facing many difficulties. The company's profits have continuously decreased in the period from 2021-2023.
Specifically, in 2021 and 2022, Phu Tai recorded revenue of VND 6,492 billion and VND 6,887 billion, respectively. Profit after tax decreased from VND 526 billion to only VND 502 billion.
The situation is even worse in 2023, with full-year revenue reaching only VND5,619 billion, down 18.4% compared to 2022. Cost of goods sold accounts for VND4,474 billion, making gross profit only VND1,144 billion.
Notably, the increase in interest expense to VND117 billion pushed Phu Tai's financial expenses up to VND143 billion. Meanwhile, financial revenue dropped to only VND30 billion. This put great pressure on profits during the period.
Selling expenses and administrative expenses accounted for VND439 billion and VND249 billion, respectively. Phu Tai's after-tax profit reached VND259 billion, down 48.4% compared to the same period last year. This profit level of Phu Tai is also the lowest in the past 8 years since 2016.
In the most recent Q1/2024, PTB's revenue reached 1,437 billion VND, with after-tax profit of nearly 90 billion VND. This result is equivalent to a completion rate of 23% of revenue and 19.5% of the annual profit plan. Thus, Phu Tai is behind schedule.
Construction facing difficulties, Phu Tai closes a series of factories
The real estate market has not shown any clear signs of recovery, which has indirectly affected construction units and construction material suppliers. Phu Tai has also been affected, forcing it to close a series of factories and manufacturing plants.
Specifically, Phu Tai's Board of Directors has approved the policy of terminating the operation of Dong Nai Province Stone Processing Factory, a branch of Phu Tai. The factory address is at Lot IX, Nhon Trach II Industrial Park - Nhon Phu, Phu Hoi Commune, Nhon Trach District, Dong Nai Province.
Phu Tai (PTB) is a giant in the field of wood and stone production but has had to close many factories (Photo TL)
The reason is that the company needs to restructure its system of units. And this is not the first time Phu Tai has closed a unit in its ecosystem. In June 2024, the Granite processing factory in Khanh Hoa province also decided to dissolve its branch.
Previously, Phu Tai also dissolved a series of units including: Dak Nong Stone Mining Enterprise; Dien Tan - Khanh Hoa Stone Processing Factory; Basalt and Granite Stone Processing Factory - Dak Nong.
As of the end of the first quarter of 2024, Phu Tai owns 18 subsidiaries, 3 associated companies and 13 affiliated units. The wood and stone product processing and manufacturing sector is still the sector that accounts for a large proportion of up to 80% of the company's revenue. Therefore, the continuous closure of factories and enterprises shows the unit's declining business situation.
Phu Tai still pays dividends at 10% rate
Phu Tai has just announced the closing of the list of shareholders to receive the second dividend in 2023 at a rate of 10% in cash. Equivalent to each shareholder owning 1 dividend will receive a cash dividend of 1,000 VND.
Currently, there are 66.9 million PTB shares in circulation on the market. Thus, Phu Tai is expected to spend 67 billion VND to pay dividends to current shareholders.
Previously, in January 2024, PTB paid the first cash dividend at a rate of 15%. Including this dividend payment, the total dividend paid to shareholders in 2023 is 25%.
In 2024, Phu Tai plans to pay a minimum dividend of 30%. At the same time, the company sets a revenue target of VND 6,175 billion and pre-tax profit of VND 462 billion.
Source: https://www.congluan.vn/loi-nhuan-cham-day-7-nam-phu-tai-ptb-dong-cua-nhieu-xuong-san-xuat-post302162.html
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