Hoa Phat reports highest-ever revenue, after-tax profit

Saturday, Oct 17, 2020 08:25

A worker operates steel pipe production line at a factory of Hoa Phat Group. The group reported after-tax profit of over VND3.78 trillion in Q3, doubling the figure recorded in the same period last year. — VNA/VNS Photo Duc Dung

Multi-sectoral conglomerate Hoa Phat Group posted its highest-ever quarterly revenue of VND24.9 trillion in the third quarter of this year, up 62.7 per cent year-on-year.

After-tax profit topped VND3.78 trillion, double the figure recorded in the same period last year.

In the first nine months of this year, the group earned VND65 trillion in revenue and more than VND8.84 trillion in after-tax profit, year-on-year rises of 40 per cent and 56 per cent, respectively, surpassing the results it made in all of 2019.

Steel and agricultural business made major contributions to the results. In September, the group recorded raw steel production of 575 trillion tonnes, the highest amount so far, nearly double the production in the same period last year.

In January-September, Hoa Phat steel sold more than 4 million tonnes of raw steel, two times higher than the same period last year. Of which, sales of construction steel reached nearly 2.5 million tonnes. The remaining was steel billets and hot-rolled coil (HRC) steel. Hoa Phat retained its leading position in the country's steel market with a 32.6 per cent share.

In addition to its leading position in the local market, Hoa Phat shipped more than 370,000 tonnes internationally, a 95 per cent year-on-year rise. The total volume of steel billets supplied to customers under signed contracts was 1.25 million tonnes.

The group's total sales volume of steel pipes and galvanised steel sheets has seen relatively high growth despite the COVID-19 pandemic.

In the first nine months of the year, its sale of steel pipe products hit nearly 570,000 tonnes, a 3.5 per cent year-on-year increase. Hoa Phat steel sheets recorded a growth of 150 per cent over the same period last year.

In recent years, the group’s agricultural sector has grown strongly, contributing about 12 per cent of revenue and 15 per cent of profit to the total.

Other industries and real estate sectors also contributed significantly to the group's overall business results. Hoa Phat furniture marked 25 years of development with a series of high-end office and home projects. Notably, Hoa Phat refrigeration recorded a sudden increase in profit and exceeded the plan for the whole year after nine months.

Hoa Phat sets a target of VND86 trillion in revenue and VND9 trillion in after-tax profit in 2020. With such positive results, the group is confident to surpass the set plans, and striving to put the No 4 blast furnace, the last item of the Hoa Phat Dung Quat Iron and Steel Production Complex, into operation in January 2021. — VNS

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