Profits to fall 48% in 2023
Phu Tai Joint Stock Company (HoSE Code: PTB) is a well-known unit operating in the field of exploitation, processing, and export of wood products and construction stone materials with a revenue scale of thousands of billions of VND. However, Phu Tai's business results have decreased in 2023.
Specifically, revenue in 2023 reached VND 5,619 billion, down 18.4% compared to 2022. Cost of goods sold accounted for VND 4,474 billion, making gross profit only VND 1,144 billion.
Phu Tai (PTB) profit drops by 48% in 2023 (Photo TL)
The burden of interest expense increased to 117 billion, pushing Phu Tai's financial expenses to 143 billion. Meanwhile, financial revenue decreased to only 30 billion.
Selling expenses and administrative expenses accounted for VND439 billion and VND249 billion, respectively. After deducting other expenses and taxes, Phu Tai's after-tax profit was 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.
Entering 2024, Phu Tai recorded revenue in the first quarter of 1,437 billion VND, profit after tax of nearly 90 billion. This result is equivalent to the completion rate of 23% of revenue and 19.5% of the annual profit plan. It can be seen that Phu Tai is progressing a bit slower than the set plan.
A series of factories and enterprises were closed.
Recently, the Board of Directors of Phu Tai 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.
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.
Also in June 2024, the Granite Processing Factory in Khanh Hoa province was also decided to dissolve its branch. Previously, Phu Tai also dissolved a series of units including: Dak Nong Stone Exploitation Enterprise; Dien Tan - Khanh Hoa Stone Processing Factory; Basalt and Granite 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.
The continuous closure of factories and manufacturing plants shows the obvious difficulties in Phu Tai's business operations.
Increasing short-term debt, investing hundreds of billions in affiliated companies
Regarding Phu Tai's asset structure, at the end of the first quarter of 2024, the company's total assets recorded VND 5,264 billion, not much changed compared to the beginning of the year.
Of which, the amount of short-term assets accounted for 2,941 billion VND. Cash and cash equivalents were accumulated much more than at the beginning of the year, accounting for 428 billion VND. The amount of receivables from customers was recorded at 801 billion VND. Meanwhile, inventories decreased, to only 1,472 billion VND.
Notably, the company made an investment in a joint venture company worth VND255 billion in the first three months of the year. These were two investments in Phu Yen Construction Materials JSC and Phu Tai Van Ha Investment JSC in Binh Dinh.
Phu Tai's capital structure shows that short-term debt is increasing, accounting for 1,553 billion VND. Meanwhile, long-term debt has decreased to 115 billion VND. While owner's equity accounts for 2,777 billion, up to 1,636 billion VND is other owner's capital. The company has not set aside a single dong for the development investment fund.
Source: https://www.congluan.vn/phu-tai-ptb-loi-nhuan-giam-50-lien-tiep-dong-cua-cac-xi-nghiep-san-xuat-da-post300299.html
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