2023 profit drops 50%
Vinh Hoan Corporation (HOSE: VHC) is a well-known unit in the field of raising and processing frozen pangasius products. However, Vinh Hoan's 2023 business results are showing a significant decline due to a decrease in fish sales volume.
Specifically, in the fourth quarter of 2023, Vinh Hoan's net revenue reached VND 2,396 billion, down 3% year-on-year. Gross profit was VND 195 billion, down 59% year-on-year due to the cost of goods sold increasing by more than 10% compared to last year.
Vinh Hoan's (VHC) 2023 profit dropped by 50%, the securities investment company lost 39 billion VND (Photo TL)
Financial revenue decreased by 20%, down to only 74 billion VND. In return, financial expenses also decreased by 66%, down to only 37 billion VND. Sales expenses and business management expenses were recorded at 63 billion and 85 billion VND respectively. Profit after tax was 66 billion VND, down 66% compared to the same period last year.
Accumulated revenue for the whole year of 2023, VHC reached 10,039 billion VND, down 24%. Gross profit reached 1,445 billion VND, gross profit margin of 14%, down 22% compared to the previous year. Net profit reached 897 billion VND, down 55%.
Compared with the profit plan of 1,000 billion VND in 2023, VHC has only completed 90% of the yearly plan.
Stock investment loss 39 billion VND
The decline in seafood business is the reason why Vinh Hoan's profits dropped significantly this year. In addition, the company is also suffering losses from stock investment activities.
Specifically, by the end of 2023, Vinh Hoan's asset size reached VND 11,806 billion, a slight increase of 2% compared to the beginning of the year. Cash and cash equivalents decreased sharply by 57%, to only VND 238 billion.
In the asset portfolio, VHC is also investing in securities with a loss of tens of billions of VND. Specifically, VHC invested 181.2 billion VND. Currently, the securities investment is recorded as a provisional value of 142.3 billion VND, equivalent to a loss of nearly 39 billion VND.
Although the loss has decreased compared to the recorded 45 billion VND at the end of the third quarter, it is still affecting VHC's business activities.
Regarding capital structure, VHC is borrowing short-term bank debt at the end of the year of more than 2,157 billion VND, down 3% compared to the beginning of the year. At the same time, the company is also borrowing long-term debt of 102 billion VND, down 42% compared to the beginning of the year.
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