Vinacafe gains profit in 2023 but still has accumulated losses
Vinacafe reported a net profit of more than VNĐ9 billion in 2023, but the company's accumulated losses still stood at more than VNĐ1 trillion, 2.3 times higher than equity
Việt Nam National Coffee Corporation (Vinacafe) reported a net profit of more than VNĐ9 billion in 2023, but the company's accumulated losses still stood at more than VNĐ1 trillion, 2.3 times higher than equity.
According to their 2023 audited financial report announced recently, the company's revenue in 2023 reached about VNĐ2.1 trillion, an increase of 18 per cent compared to 2022. Its gross profit was more than VNĐ259 billion, an increase of 70 per cent.
After deducting numerous expenses, Vinacafe gained a net profit of more than VNĐ9 billion in 2023. The company saw better business results last year than the losses of VNĐ105 billion in 2022 and VNĐ210 billion in 2021.
However, Vinacafe said that in the past year, climate change caused difficulties in growing Robusta coffee nationwide.
From the beginning of 2023, the Central Highlands provinces were affected by prolonged drought and had to increase costs to irrigate trees. There are also 25-years-old coffee gardens with low productivity and quality.
The financial report also showed that as of December 31, 2023, Vinacafe's total assets reached VNĐ2.886 billion, down nearly VNĐ57 billion compared to the beginning of 2023. Vinacafe's equity was at VNĐ472 billion, while its accumulated losses amount to about VNĐ1 trillion.
Vinacafe was established in 1995, formerly known as the Union of Vietnam Coffee Enterprises. By 2010, this enterprise changed to a one-member limited liability company with 100 per-cent State capital represented by the Ministry of Agriculture and Rural Development.
Now, Vinacafe has 28 subsidiaries as of December 31, 2023, of which five companies are in the overall plan on restructuring. The Ministry of Agriculture and Rural Development coordinates with relevant departments to carry out the arrangement, renewal and dissolution of those subsidiaries.
Vinacafe also used to be the parent company of Vinacafé Biên Hòa Joint Stock Company (HoSE: VCF). After Vinacafe's many divestments, Vinacafé Biên Hòa has become a subsidiary of Masan Group. — VNS
