Vicostone Joint Stock Company, a member of Phenikaa Group, has estimated its net revenue and pre-tax profit at VND1.72 trillion and VND439.8 billion in the second quarter of 2022, down 3.8 per cent and 16.91 per cent year-on-year, respectively.

The unsatisfactory figures were caused by several macro-economic adversities, including the growth of inflation rates, the Russia-Ukraine conflict, the 'Zero-COVID' policy of the Chinese government, and the disruption of the global logistics industry, all of which have undermined Vicostone's operations and performance in overseas markets.

In key markets like North America and Europe, the real estate and housing sectors have endured high inflation, increases in interest rates, and soaring commodity prices.

The scarcity of building materials, kitchen and bathroom appliances, and interior equipment, the disruption of the global supply chain, the increased shipping rates and the shortage of skilled labour have also had negative impacts on the construction and real estate industries, leading to the delay of housing development projects in the US and Europe, and the weak consumption of engineered stones in these markets, Vicostone said.

Meanwhile, other companies with cheaper outputs are starting price competition in the engineered stone sector as the number of low-cost engineered stone manufacturers has increased rapidly, especially those from India, China, Viet Nam and Malaysia.

"Though most of the elements were addressed in the risk management plan for 2022 and discussed at the 2022 Annual General Meeting, the problem had a serious effect on the company’s key markets," Vicostone said.

However, the performance has showcased the utmost efforts made by the company in efficient risk management, mastery of input supply chains, and effective cost management.

Vicostone said it would keep an eye on the socio-economic developments of domestic and international markets to deliver proper plans and solutions for better cost control and speed up the research and development of new and high-quality products.

Additionally, the company would also strive to secure and expand its markets in key markets, further develop its presence in new markets to increase brand coverage, sustain its revenue growth, and achieve a similar performance compared to the previous year. — VNS