Recently, Thien Long Group Corporation (HoSE: TLG) announced its business results for the first 7 months of the year. Accordingly, the company's net revenue reached VND2,218 billion, up 1% over the same period. Of which, export revenue reached VND538 billion.
In the first 7 months of 2023, sales and administrative expenses increased by 16% to VND632 billion, as the group invested heavily in human resources from mid-2022 to prepare for future development. In addition, earlier this year, the unit also increased sales and brand development expenses to prepare for the peak consumption season.
As a result, Thien Long's after-tax profit decreased by 22% compared to the same period, down to VND277 billion. Thus, in total for 7 months, this enterprise earned more than VND1 billion per day.
In July alone, TLG's revenue reached 230 billion VND and profit after tax reached 9 billion VND. Compared to the achieved results, the company has completed 55% of the revenue target and 69% of the annual profit target.
Explaining the reason for the decline in business results, Thien Long said that Vietnam's economy in 2023 was affected by complex and unpredictable factors, leading to the retail industry facing many difficulties.
Therefore, the demand for investment and stockpiling of stationery products at points of sale (POS) has not increased much compared to last year. Export business, especially with OEMs (units specializing in manufacturing work according to partners' orders) is also facing many challenges from the gloomy context of the international market.
Previously, at the 2023 Annual General Meeting of Shareholders, General Director Tran Phuong Nga said that Thien Long is preparing a solid foundation to expand its scale. In the revenue structure of 10,000 billion VND in 2027, the selling price level will increase by 50 - 70% according to the 5-year roadmap.
Revenue of 10,000 billion VND will come from 3 pillars including export sector accounting for 1/4, domestic sector increasing in value rather than focusing entirely on output, and finally new sectors.
Nowadays, consumer demand will increase over time with people's income, young consumers will be willing to pay more for better experiences. Therefore, the company pursues the goal of quality, experience value rather than output.
On the stock market, at the end of the trading session on September 6, TLG shares lost 0.7% at the close, only 56,900 VND/share. Compared to the bottom in March 2023, the market price of this stock has increased by 23% .
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