Posted on 28 Jul 2022
Vietnam’s leading steelmaker Hoa Phat Group has seen its profits impacted by lower sales caused by sluggish demand in the second quarter, which in turn dragged the year-on-year growth of profit after tax in the first half into negative territory, Kallanish observes.
In Q2, Hoa Phat achieved a revenue of VND 37.71 trillion ($1.61 billion), down 15% quarter-on-quarter but up 6.5% year-on-year. Quarterly profit after tax, meanwhile, halved from Q1 to VND 4.02 trillion, a y-o-y slump of 58.7%.
In H1, the company supplied nearly 4 million tonnes of steel to the market, down by 6% y-o-y. However, crude steel production still rose 8% to 4.3mt during the same period.
Despite a 23% y-o-y increase in half-year revenues, Hoa Phat’s after-tax profit still dropped by 27% y-o-y in H1, touching VND 12.23 trillion. The figure completed 46% of its target for the year.
In H2, Hoa Phat plans to continue to accelerate major projects such as the Dung Quat 2 Complex and its Australian Iron Ore Mining Project. Its household appliances and container manufacturing projects are estimated to operate their first production lines in Q3 ad Q4 of 2022, respectively.
Source:Kallanish
