Vinafood 2 maintains losses in first half

A single subsidiary of Vinafood 2 somehow misplaced an astounding 83,000 tonnes of rice, demonstrating gross mismanagement behind the corporation's losses

Vietnam Southern Food Corporation (Vinafood 2, UPCoM: VSF) has just announced its consolidated financial statement for the second quarter of 2019.

Accordingly, as of June 30, 2019, the total assets of Vinafood 2 rose by 7.6 per cent to VND9.571 trillion ($416.13 million), including increases of 20 per cent in short-term assets to VND4.867 trillion ($211.6 million) and 80 per cent cash to VND1.1 trillion ($47.83 million), mainly in bank deposits.

During the quarter, the inventory of Vinafood 2 reduced by 7.6 per cent but remained at a high level of VND2.604 trillion ($113.22 million), including products, goods, materials, and goods sold.

Notably, the inventory of the corporation was 83,313 tonnes of rice short of its paper records, equivalent to VND662 billion ($28.78 million) from Honda Imextravinh. Meanwhile, the Thot Not branch was missing VND220 million ($9,560) worth of goods as of April 20, 2019.

At the parent company, 1,521 tonnes of goods, which were insured to be exported to the Philippines, were missing. This amount will be offset by the insurance company. However, on June 30, 2019, this case had yet to be handled so it was entered under the "missing property, pending processing" title.

The bad debts of Vinafood 2 amounted to VND1.3 trillion ($56.52 million) as of June 30, 2019, while short-term loans increased by nearly 17 per cent to VND3.853 trillion ($167.52 million).

In the second quarter of 2019, Vinafood 2 gained VND4.97 trillion ($216.1 million) in net revenue, while expenses were VND394 billion ($17.13 million), interest of loans was VND58 billion ($2.52 million), sales expenses were VND299 billion ($13 million), while corporate management costs were VND97 billion ($4.22 million).

Thereby, net profit was negative VND93 billion ($4.04 million), while pre-tax profit was negative VND86.3 billion ($3.75 million) and after-tax profit was negative VND91.5 billion ($3.98 million).

In the first half of the year, Vinafood 2 lost VND75 billion ($3.26 million), while net revenue was VND8.652 trillion ($367.17 million), and gross revenue was VND866 billion ($37.65 million).

The two largest shareholders of Vinafood 2 are the state (holding 51.43 per cent) and T&T Group (25 per cent).

Last month, Vinafood 2's Board of Management cancelled the 2019 annual general meeting of shareholders scheduled for July 31.

The stocks of Vinafood 2 were listed on the UPCoM on April 23, 2018. They are now traded at VND7,100 apiece now, down 40 per cent compared to the VND12,000 peak on last March 12.