Four-month earnings slow but firms hope for better months ahead

Saturday, May 23, 2020 07:34

A PetroVietnam Power facility. The company estimated its revenue in the first four months may drop 4 per cent on-year to VND10.3 trillion. — Photo

A number of listed companies have announced lower earnings in April after closing for half of the month.

PetroVietnam Power Corporation (PV Power) estimated revenue in April reached VND2.41 trillion (US$103.7 million), fulfilling 81 per cent of its monthly target.

This resulted in a 4 per cent annual decrease in total revenue after four months to VND10.3 trillion – equal to 30.4 per cent of the annual goal.

Retail giant Mobile World Investment Corporation (Mobile World) reported April revenue fell a fifth from the VND9 trillion recorded in April 2019.

The company explained that some of its stores were closed to fight COVID-19 while sales in April fell as demand for air conditioners dropped due to weather.

Mobile World recently lowered its full-year earnings target by 10 per cent in total revenue and 30 per cent in total profit for 2020.

Seafood processor Nam Viet Corporation, pharmaceutical firm Imexpharm, and textile companies Thanh Cong Textile and Garment Investment Trading JSC and TNG Investment and Trading JSC are among the others to post lower earnings in April.

Those companies are expecting their earnings to pick up in May and the following months as domestic consumption and international markets return to normal.

On the other hand, some companies reported profits despite the disease and lockdown such as Hai Phong Thermal Power JSC.

The northern thermal power firm announced profit in April of VND103 billion, beating the month target by VND4 billion despite output falling by 7 per cent than targeted.

In the first four months, Hai Phong Thermal Power made VND397 billion in profit, fulfilling 42 per cent of its annual target.

Steelmaker Hoa Sen announced its revenue in April hit VND2.23 trillion with profit of VND90 billion.

Seven months into its fiscal year, which runs from October 1 to September 30, Hoa Sen estimated its total revenue was VND14.6 trillion – fulfilling half of its yearly plan. The firm estimated profit of VND472 billion, beating its forecast by 18 per cent.

Technology group FPT posted 13.5-16.8 per cent annual growth in revenue and post-tax profit in the first four-month period, which reached VND8.84 trillion and VND1.30 trillion, respectively.

Though corporate earnings were mixed in April, companies are expected to disclose business information on a monthly basis to inspire investor confidence in their corporate governance, while dealing with rumours that could negatively affect their results and share performances. — VNS

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