On March 5th, VGC held a meeting to evaluate the business performance for the first two months of the year, showing signs of recovery.
For the first two months of the year, Viglacera announced that it had achieved its consolidated pre-tax profit target, reaching 14% of the annual plan and exceeding 128% compared to the same period. According to VGC‘s temporary business plan for 2024, the annual pre-tax profit target is 1,216 billion VND, with an estimated profit of about 170 billion VND in the first two months of the year.
Revenue is estimated to reach 67% of the first quarter plan for 2024 and 91% compared to the same period. Export revenue in February 2024 is estimated at 2.8 million USD. The cumulative revenue for the first two months is 5.5 million USD, exceeding 18% compared to the same period.
In the real estate sector, VGC announced that in March, real estate companies will concentrate their forces and resources to implement plans for new projects and accelerate the business progress of worker housing – social housing projects that have been completed. They will also promote the development of green and smart industrial parks and continue to improve the quality of management and operation of existing industrial parks and urban areas.
VGC plans to invest in 50,000 social housing units in the 2022-2030 period through specific projects such as worker housing project at Dong Van IV Industrial Park, social housing project in Kim Chung, worker housing project in Hai Yen – Quang Ninh, or participate in bidding for new projects in Bac Ninh, Phu Tho, and Hanoi.
In addition, VGC stated that it will focus on infrastructure construction in industrial park projects such as Thuan Thanh I, Tien Hai, Phong Dien, Phu Ha, Hai Yen to attract domestic and foreign enterprises.
Net profit in 2023 decreased by 30%
According to the audited consolidated financial statements for 2023 recently published by Viglacera, the company recorded net revenue of nearly 13,194 billion VND, a decrease of 10% compared to 2022. After deducting the cost of goods sold, gross profit decreased by 17% to over 3,519 billion VND.
During the period, interest expense increased by 39% to nearly 349 billion VND. Meanwhile, selling expenses were over 812 billion VND and administrative expenses were 756 billion VND, a decrease of 13% and 17% respectively. The company also incurred a loss of over 36 billion VND in joint venture and associate companies. As a result, Viglacera’s net profit in 2023 decreased by 30% to 1,218 billion VND.
| Business performance of VGC from 2019-2023 |
At the end of 2023, VGC announced its temporary business plan for 2024, with a target total consolidated revenue of 13,468 billion VND, an increase of 2% compared to the previous year; and a pre-tax profit of 1,216 billion VND, a decrease of 24%.
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VGC‘s temporary business plan for 2024
Source: VGC
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Viglacera stated that the global economy in 2024 will gradually recover, but at a slow pace, especially in the first half of the year. Therefore, the company will focus on addressing the remaining issues in 2023 and actively implement the divestment plan of State capital at the Group in accordance with the Decision of the Ministry of Construction and the Prime Minister.
