Steel maker Hoa Sen Group’s profit soars 4.8 times

Tuesday, Oct 13, 2020 08:50

A worker operates machines at a factory of steel maker Hoa Sen Group (HSG) in HCM City. Despite the impacts of COVID-19, Hoa Sen Group still implemented drastic measures to maintain positive earning results. — Photo

Steel maker Hoa Sen Group (HSG) reported an estimated post-tax profit of VND400 billion (US$17.3 million) in the fourth quarter of the 2019-2020 fiscal year, 4.8 times higher than last year.

The 2019-2020 fiscal year runs from early July 2019 to late September 2020.

The group expected revenue in the period to reach VND8.3 trillion, up 31 per cent year-on-year. Consumption is estimated at more than 425,200 tonnes, up 46 per cent year-on-year.

Despite the impacts of the COVID-19 pandemic, Hoa Sen Group still implemented drastic measures to maintain positive earning results.

Instead of focusing on production and price competition, HSG emphasised the improvement of technology, product quality enhancement, market expansion and other aspects.

It also capitalised on the advantage of the 536 branches and store system nationwide to raise the gross profit margin. This has led to a sharp increase in HSG's profits in recent quarters.

The group has also comprehensively restructured its production and business activities, reducing management costs significantly. At the same time, the successful operation of the enterprise resource planning (ERP) system in its operation activities has caused the cost of business management to drop sharply.

It actively managed all types of assets such as inventories, liabilities and other short-term assets, creating conditions for a sharp reduction in bank loans, thereby reducing financial costs, especially interest expenses.

The remarkable growth in all export markets in the current difficult context has greatly contributed to HSG's positive outputs and profits. — VNS

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