Vietnam National Textile and Garment Group (Vinatex, UPCoM: VGT) has just announced the fourth quarter financial report, recording the results of a decline, a decrease in sales and an increase in costs, making the leading group in the textile industry lose for the first time. hole.
Vietnam Textile and Garment Group (Vinatex, UPCoM: VGT) recorded in the fourth quarter of 2022, revenue reached VND 4,161 billion – down 15% compared to the same period in 2021 (continuously decreasing in the last 4 quarters). Gross profit dropped sharply by 71% to VND 194 billion. The increase in COGS was stronger than last year, causing the company’s gross profit margin to drop sharply from 13.9% to 4.7%.
During the period, financial income increased significantly, to nearly 246 billion dong (2.3 times higher than the same period). Financial expenses also doubled over the same period, to more than 192 billion dong. Selling expenses were nearly 143 billion dong, down slightly by 2%; while administrative expenses fell sharply by 70% to VND 252 billion. In addition, joint ventures and associates brought in a profit of 191 billion dong, down 19% over the same period.
As a result, Vinatex post-tax loss of more than 5 billion dong in the fourth quarter, while the same period profit is more than 234 billion dong. This is also the first loss quarter of VGT since the company was equitized (since 2015).
Report on business results of the fourth quarter of 2022 of Vinatex
Vinatex explained that the reason why profit after tax decreased by 101% compared to the results achieved in the previous year is because:
OneDue to the influence of the Zero Covid policy of the Chinese market, the demand in some markets decreased at the end of the year, affecting the consumption situation and the price of Yarn inventory.
Twothe provision for devaluation of inventories at the time of the fourth quarter of 2022 greatly affected the results in the quarter.
In the whole year of 2022, VGT brought in nearly VND 18,400 billion in net revenue (up 15%) but due to a loss in the fourth quarter, profit before tax decreased by 17%, to VND 1,211 billion.
In 2022, VGT targets revenue of VND 18,067 billion and pre-tax profit of VND 951 billion, increasing by 6.4% and 10.2% respectively compared to the previous year. With the above results, Vinatex exceeded 2% of revenue target and 27% of annual profit target.
As of December 31, 2022, the company’s total assets recorded a negligible change compared to the beginning of the year, reaching VND 20,222 billion, of which cash and cash equivalents reached more than VND 621 billion; short-term financial investment at nearly 2,200 billion; Short-term receivables decreased to VND 2,485 billion while inventories increased by nearly VND 700 billion compared to the beginning of the year to VND 4,031 billion.
Liabilities by the end of 2022 decreased to VND 10,660 billion, of which financial debt was at VND 7,140 billion – an increase compared to the beginning of the year; Vinatex’s equity reached VND 9,563 billion, of which undistributed profit after tax was at VND 1,267 billion.
On the stock market, closing the trading session on February 3, VGT’s share price increased by 1.68% compared to the previous session, currently priced at 12,100 VND/share.