Vicostone Joint Stock Company (HNX: VCS) posted a net revenue of more than VND1 trillion (US$46.7 million) in the third quarter of this year, according to its Q3 consolidated business results published on Saturday.

During the quarter, the company's pre-tax and after-tax profits reached VND235 billion and VND200 billion, respectively.

In the first nine months of 2022, Vicostone - a member of Phenikaa Group, reported over VND4.43 trillion in net revenue, more than VND1.1 trillion in pre-tax profit and VND941 billion in after-tax profit.

Vicostone's business performance has been influenced by global macroeconomic factors as revenue mainly comes from export activities. Rising inflation globally has been eroding incomes and living standards of households, while reducing consumption. In that context, the demand for Vicostone's stone products, which are not regarded as essential goods, have decreased.

The company has seen its orders decrease in most export markets, especially main ones like Australia, North America and Europe. In addition, it has faced harsh competition from rival companies in markets such as Australia, Canada, America.

Amid the global gloomy economic conditions, Vicostone forecast its export activities will continue to face difficulties in the remaining months of this year. That will not only negatively affect its business goals not only in 2022 but also in 2023.

To deal with these challenges, Vicostone has proactively deployed many solutions to minimise risks in business activities including investing in R&D to develop new products; optimising cost management; continuing the strategy of localising input materials in production to reduce the risk of dependence on imported raw materials and the risk of exchange rate fluctuations.

It is hoped these measure will reduce costs and increase competitive advantage in the context that many businesses in the industry have been coping with difficulties due to the impact of the disruption of the global supply chain. — VNS