Nha Be Garment JSC recorded losses due to pandemic

Nha Be Garment JSC recorded losses in the first six months due to the pandemic

In the first six months of the year, Nha Be recognised consolidated net revenues of $58.2 million, down 24 per cent, with a loss after tax of $1.36 million.

The company explained that from the beginning of the year, the pandemic has affected Vietnam and many countries and territories in Europe, America, and Asia – the main export markets of the company, its 10 subsidiaries, and nine joint ventures.

Cash and cash equivalents decreased by more than $8.8 million compared to the beginning of the year. In which, demand deposits at banks declined most, down by more than $4.2 million.

The company's inventory value by the end of the period was nearly $38 million, up more than 21 per cent; of which, raw materials were worth nearly $13.4 million.

The second quarter is the period when the disease began to spread in Ho Chi Minh City, leading to strict social distancing measures in the city and the southern region. As a result, the activities of businesses and people in the area have been disturbed, and production maintenance costs also began to increase.

In the second quarter of 2021, the company’s net revenue decreased by 2.4 per cent, with cost of goods sold decreased by 0.4 per cent over the same period, resulting in a decrease in gross profits by more than 11 per cent, to only $5 million.

During the period, business management expenses were nearly $3.12 million, up 5 per cent compared to the second quarter of 2020.

As of the end of June, the company has vaccinated almost all of its 3,100 employees, with a mere 100 workers yet to be inoculated.

Since July 8, the company has mobilised about 650 workers to ensure production, with 280 of them arranged to work directly at the production lines.