Many businesses have experienced losses for the first time or after many years due to disruptions caused by COVID-19 in the third quarter of 2021. Their target is now making efforts to revive in the fourth quarter to complete the yearly plan.

Losses after years of gaining

In its third-quarter financial report, Pha Lai Thermal Power JSC (PPC) reported a drop of 33 per cent year-on-year in net revenue to over VND1 trillion (US$45.7 million), resulting in a loss of VND35.4 billion.

This marked its first quarterly loss since 2016. In the third quarter of 2020, the company posted profit of VND90 billion.

The loss was mainly due to higher cost of goods sold, making the gross profit negative VND44.4 billion.

For the first nine months of the year, Pha Lai Thermal Power recorded revenue of more than VND3.3 trillion, with profit after tax of VND223.3 billion, down 44.8 per cent and 55.6 per cent, respectively. Therefore, as of September 30, the company completed 59 per cent of 2021’s revenue target and 54 per cent of the profit target.

After reporting very positive business results with a profit of VND65.4 billion in the third quarter of last year, Haxaco (HAX) experienced a loss of VND33.3 billion.

Accordingly, its consolidated revenue fell 59.3 per cent year-on-year to VND708.89 billion in the third quarter. For the first nine months, Haxaco’s consolidated revenue declined 9.1 per cent to nearly VND3.4 trillion, with profit after tax of VND34.3 billion, down 45.1 per cent over the same period last year.

The company’s business activities were seriously affected by the fourth outbreak of the pandemic, Do Tien Dung, Chairman of the Board of Directors of Haxaco told tinnhanhchungkhoan.vn.

Two of its branches in HCM City had to close for the whole third quarter, while two branches in Ha Noi were closed until September 21. Sales dropped sharply, while it still had to pay for depreciation expenses, salary costs and other fixed costs, causing Haxaco to witness a loss in the last quarter.

Located in the centre of the COVID-19 hotspot, Thanh Cong Textile Garment Investment Trading JSC (TCM) carried out the “three-on-site” model throughout September, resulting in big drops in output and production capacity.

Meanwhile, the higher costs due to expenses to test workers twice a week, resulting in losses for Thanh Cong Textile in September. This was also the second monthly loss of the company.

Of which, its net revenue slid by 20 per cent over last year to VND782.9 billion, with a loss of VND2.5 billion.

However, as of September 30, Thanh Cong Textile’s revenue was mostly unchanged compared to the same period of 2020 at VND2.7 trillion, while its profit after tax was VND118.6 billion, down 41 per cent. With the results, the company fulfilled 63.5 per cent of its whole year’s revenue plan and 39.5 per cent of profit after tax plan.

Thanh Cong Textile exports textiles to many countries around the world. In September, its export revenue to the US market accounted for the highest proportion, with 36.63 per cent of total export value. It was followed by South Korea, accounting for about 31.8 per cent, while Japan and China were among the largest markets with market shares of over 9 per cent.

Of securities companies, while many posted record third-quarter profits like SSI Securities and VNDIRECT Securities, Bao Minh Securities (BMS) saw a net loss of nearly VND38.2 billion. This was also its biggest loss recorded since the first quarter of 2020.

The third-quarter financial statement showed that Bao Minh Securities’ revenue decreased by 11.4 per cent over the same period last year to VND54.5 billion. The drop was due to the inefficiency of the securities trading division, which accounted for a large proportion of its revenue.

Besides some businesses reporting losses for the first time or after many years, there are businesses whose losses were expected. For example, Vinasun (VNS) announced its revenue of nearly VND23 billion in the third quarter, down 90 per cent over last year.

The company was also heavily affected by the social distancing orders due to COVID-19 during the period, causing a net loss of more than VND90 billion.

In the first nine months of 2021, Vinasun lost VND185.4 billion. It posted a loss of more than VND182.6 billion in the same period last year.

Efforts to revive in the fourth quarter

In the fourth quarter, Haxaco leaders said that they had carefully prepared to carry out business plans when the country’s economy entered the new normal phase.

All employees had been vaccinated, ensuring safety for operations. The company also worked with the Mercedes-Benz Vietnam factory and partners to ensure a balance between supply and demand during the peak business season at the end of the year.

Meanwhile, at Pha Lai Thermal Power, Le The Son, Chief Financial Officer, said that the third quarter was normally a low period in operation. And given the impact of the pandemic and problems that occurred at the Pha Lai 2, the consumption output was much lower than the same period last year.

The return of Pha Lai 2 in the fourth quarter was expected to help the company improve profit and complete its whole year target.

Meanwhile, Tran Nhu Tung, Chairman of Thanh Cong Textile’s Board of Directors, said that the company was trying to boost its operating capacity to meet export orders.

Currently, it had received orders until the end of 2021 and the first quarter of 2022. The company was speeding up the construction of Vinh Long 2 plant to keep up with orders for 2022. VNS