Second Quarter Profit Drops 70%, Fish Export Revenue in First 6 Months Decreases Nearly 600 Billion VND
In the second quarter of 2023, Sao Mai Group brought in VND 3,254.9 billion in revenue, down 18.9% over the same period. Of which, cost of goods sold accounted for VND 2,867.4 billion, gross profit reached VND 387.5 billion. Gross profit margin decreased from 15.8% to only 11.9%.
Financial revenue decreased slightly to VND56.2 billion while financial expenses increased by 61.6%, from VND136.1 billion to VND220 billion. The main increase was interest expense, increasing from VND102.1 billion to VND212.1 billion. Thus, on average, Sao Mai Group has to pay nearly VND2.4 billion in interest expense every day.
In return, selling expenses decreased from 140.4 billion to 36 billion VND. Business management expenses increased from 54.8 billion to 69.6 billion VND. After deducting expenses and taxes, ASM's after-tax profit was only 118.5 billion VND, down nearly 70% compared to the same period.
Sao Mai Group's fish export revenue decreased by nearly 600 billion VND (Photo TL)
Sao Mai Group's accumulated revenue in the first 6 months of the year reached 6,305.3 billion VND, down 12.7% over the same period. Of which, the fish export business segment saw the sharpest decline, from 2,065.5 billion VND to only 1,477.7 billion VND, equivalent to a decrease of nearly 600 billion VND over the same period.
The real estate business also decreased nearly 3 times, from 158.3 billion to only nearly 57 billion VND. Commercial revenue and fish feed revenue also decreased to 1,475.9 billion and 2,782.9 billion VND respectively. Only the solar power segment had an increase in revenue, from 307.8 billion to 405.7 billion VND.
Sao Mai Group's accumulated after-tax profit in the first 6 months of the year was only VND213.7 billion, down 71.2%. The main reason was that financial expenses, especially interest expenses, doubled in the first 6 months of the year, up to VND403.6 billion.
Debt exceeds equity by nearly 2,350 billion VND, has 1,700 billion VND deposited in the bank but still increases debt
At the end of the second quarter, ASM's asset size reached VND19,281.1 billion, a slight increase compared to the beginning of the year. Of which, the amount of cash decreased from VND847.9 billion to VND324.9 billion. Meanwhile, the amount of bank deposits increased from VND951.3 billion to VND1,700.8 billion.
The increase in bank deposits while ASM had to increase its borrowing by thousands of billions of VND shows an imbalance in cash flow. This can be clearly seen when the interest on deposits and loans in the first 6 months of the year only reached 45.1 billion, a sharp decrease of 42.6% compared to the same period.
Meanwhile, interest expense in the first 6 months of the year increased from 202.7 billion to 403.6 billion VND. It can be seen that ASM is depositing 1,700.8 billion VND in the bank and then having to borrow more money to do business and have to pay an increasing amount of interest expense.
The increase in debt is also clearly shown through Sao Mai Group's capital structure.
Liabilities are currently at VND11,501.9 billion, a slight increase compared to the beginning of the year. Notably, short-term debt decreased from VND6,190.4 billion to VND5,872.9 billion. However, long-term debt increased from VND3,630 billion to VND4,252.4 billion. ASM's total debt is VND10,125.3 billion while equity is only VND7,779.2 billion. Thus, debt alone exceeds equity by nearly VND2,350 billion.
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