SAM Holdings profit drops 45%, still guarantees subsidiary's loan of 5 million USD

SAM Holdings guarantees $5 million loan for subsidiary

Recently, SAM Holdings JSC (Code SAM) has announced the provision of a payment guarantee letter for all debt obligations (including principal, interest and other debt obligations) of Sacom Wire and Cable JSC at the bank. The initial limit of this guarantee is 5 million USD, equivalent to 121.5 billion VND.

SAM Holdings' profit drops 45.7%, still guarantees a loan of 5 million USD for its subsidiary (Photo TL)

Currently, SAM Holdings owns 99.92% of shares in Sacom Wire and Cable. Therefore, it is relatively understandable that SAM Holdings guarantees a loan for its subsidiary. However, this guarantee is given in the context of SAM's business activities showing clear signs of decline in recent times.

Escape from loss in Q3 thanks to financial activities only

Specifically, SAM Holdings' Q3 revenue was recorded at VND520.2 billion, down 4.7% year-on-year. Gross profit in the period reached VND36 billion, down 24.4%.

Financial revenue was recorded at VND29.9 billion, down 57.7%. However, financial expenses also decreased by 64.7%, down to VND20.9 billion. Sales and administrative expenses also decreased, down to VND8.7 billion and VND34.6 billion.

After deducting all taxes and fees, SAM's after-tax profit was VND7.6 billion, down 33% year-on-year. It can be seen that if it weren't for the nearly VND30 billion in financial revenue, SAM would have almost certainly suffered a loss in the third quarter.

SAM's accumulated revenue in the first 9 months of the year reached VND 1,451.9 billion, down 7.7%. Profit after tax reached VND 24.8 billion, down 45.7%. Compared to the business plan set for 2023, SAM has only completed 60% of the revenue plan and 27.5% of the annual profit target.

In the trading session on December 1, 2023, SAM shares are being traded at VND 6,420/share.

Source: https://www.congluan.vn/sam-holdings-sam-loi-nhuan-sut-giam-45-van-bao-lanh-cong-ty-con-vay-no-5-trieu-usd-post274677.html