GTNFoods still in red after massively profitable first quarter

May 05, 2020 | 18:01

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Despite a 2.3-fold rise in after-tax profit in the first quarter, GTNFoods (code: GTN) has still lost VND195 billion ($8.5 million) in accumulated profit.

gtnfoods still in red after massively profitable first quarter

GTNFoods reported $8.5 million in accumulated losses

GTNFoods JSC, an arm of milk giant Vinamilk and the owner of famous milk brand Moc Chau, has released its financial statement for the first quarter of 2020 with a slight increase in revenue to VND633 billion ($27.5 million).

Costs of sales reduced sharply, so the gross profit margin has improved significantly to 26.3 per cent from 16.8 per cent, while gross profit gained VND166.7 billion ($7.25 million), increasing by 59 per cent on-year. The revenue from financial activities has doubled to VND30.8 billion ($1.34 million), thanks to the interest on deposits.

As a result, GTNFoods obtained VND40 billion ($1.74 million) in after-tax profit, rising 2.3-fold on-year, with VND16 billion ($695,650) belonging to the parent company. However, GTNFoods still reported more than VND195 billion ($8.5 million) in accumulated losses as of March 31, 2020.

In 2020, GTNFoods plans to reach VND2.909 trillion ($126.5 million) in revenue, down 2 per cent on-year, but after-tax profit will have to rise by 662 per cent on-year, to VND99 billion ($4.3 million). Thus, the first quarter has already advanced 22 per cent towards the revenue target and 40.4 per cent towards the profit target of the full year.

At the end of the first quarter, the total assets of GTNFoods have been maintained at VND4.057 trillion ($176.4 million), equivalent to the beginning of the year. Of this, short-term deposits have risen to VND1.929 trillion ($83.87 million), 2.8 times as much as at the beginning of the year, making up 47.5 per cent of the total assets. However, money and money equivalents dropped sharply to VND120 billion ($5.2 million) from VND1.289 trillion ($56 million).

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