FECON reports second-quarter revenue up but profit down

Wednesday, Jul 08, 2020 08:19

A site run by construction firm FECON Corporation. FECON recorded after-tax profit of VND15.6 billion in Q2, down nearly 81 per cent. — Photo baodautu.vn

Construction firm FECON Corporation (FCN) announced second-quarter revenue of nearly VND762 billion, up 26.5 per cent year-on-year.

Gross profit margin increased from 10.2 per cent to 14 per cent thanks to lower cost of goods sold.

Financial income dropped by over 99 per cent to VND1.8 billion. Financial expenses decreased from VND119.6 billion to VND29.6 billion. In contrast, corporate management expenses and selling expenses rose by 1.4 per cent and 27.5 per cent over the same period last year, respectively.

After deducting all expenses, FECON recorded after-tax profit of VND15.6 billion in Q2, down nearly 81 per cent.

According to its explanation, in the quarter, the company did not record any extraordinary profits from the partial divestment from Vinh Hao 6 Solar Power Project and from the transfer of a 36-per-cent stake in FECON Underground Construction Joint Stock Company (FCU) to Japanese partner Raito Kogyo, as in the same period last year.

In the first six months, revenue and net profit of FECON reached VND1.2 trillion and VND28 billion, respectively, up by 9 per cent and down by 74.3 per cent year-on-year. With these results, the company has completed 29.8 per cent of the revenue plan and 14.4 per cent of the profit plan for this year.

As of June 30, the total assets of the company reached VND5.9 trillion, up 4.7 per cent compared to the beginning of the year. In particular, short-term receivables accounted for VND3.6 trillion, up slightly from the beginning of this year. Inventories increased by 23 per cent to VND831 billion. Cash and cash equivalents rose from VND236.5 billion to VND243.8 billion. — VNS

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