Gemadept Corporation, the owner of the largest Gemalink deep-water port in Vietnam, reported positive business results but negative cashflow in the first seven months of 2021.
|Gemadept has been benefiting from the increase in freight rates |
In the first seven months, Gemadept's net revenue reached VND1.7 trillion ($73.9 million), with after-tax profit reaching VND402.8 billion ($17.5 million), up 19 and 32 per cent on-year. The gross margin was down 2 per cent to 39 per cent.
The main contributor to net revenue was still seaport operation with VND1.4 trillion ($60.87 million), up 22 per cent and accounting for 86.2 per cent of the company's total revenue. Revenue from logistics, office leasing, and other activities increased slightly.
Due to the increase in the cost of goods sold, the company's gross profit reached VND656 billion ($28.5 million), an increase of 13 per cent compared to the corresponding period of 2020.
Selling expenses increased 18 per cent to VND87.5 billion ($3.8 million) while general and administrative expenses dropped 11 per cent to VND159.3 billion ($6.93 million). Financial expenses decreased 21 per cent to VND82 billion ($3.57 million) while financial income was up 34 per cent to VND30.8 billion ($1.34 million). Interest cost was down 23 per cent to VND69 billion ($3 million).
Notably, cashflows from operating activities increased significantly from VND233.2 billion ($10.14 million) last year to VND655.4 billion ($28.5 million). However, cashflow from investing activities was negative VND268.3 billion ($11.7 million), five times the loss of last year.
As of July 31, the company’s total assets increased by 4 per cent to VND10.3 trillion ($448.6 million). Of this, long-term assets accounted for 17 per cent with VND1.7 trillion ($74 million) while long term financial assets were VND2.5 trillion ($11.67 million), accounting for 24 per cent, and fixed assets made up 32 per cent with VND3.3 trillion ($143.5 million).
Gemadept is working in port operations, logistics, afforestation and real estate. It consists of a parent company, 19 subsidiaries, and 16 associates and joint ventures.