Image: TLG
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“King of ballpoint pens” Thiên Long announces its business results for January 2024, with net revenue of 241 billion VND, an increase of 10% compared to the same period last year, equivalent to a daily revenue of about 7.8 billion VND. Leading the growth is the domestic revenue, which increased by 17%; export activities also improved by 3%, contributing 108 billion VND in revenue.
The decrease in cost of goods sold helped the company achieve a gross profit of 101 billion VND, an increase of 13%; the gross profit margin also improved by 1 percentage point to 42%. Although the SG&A expenses (selling, general, and administrative expenses) for January increased slightly by 5% to 80 billion VND, Thiên Long still reported a net profit of 18 billion VND, an increase of 57% compared to the same period last year.
The management of TLG said that the positive performance in the business results for January 2024 is due to the context of this year’s Tet holiday falling in February (instead of January like in 2023) and the slight increase in demand for stockpiling goods in convenience stores and bookstores. In addition, the company’s OEM export business also showed a slight recovery in the first month of the year.
However, the company notes that the business results for January, and the first quarter in general, do not clearly reflect the revenue and profit trends of TLG for the whole year 2024, as this is not the peak season for business and the implementation of the Group’s brand promotion campaigns. Therefore, many commercial and marketing expenses have not been incurred and recorded.
| TLG’s Business Performance from 2015-2023 |
Looking back at 2023, Thiên Long recorded a net revenue of 3.462 trillion VND and a net profit of 356 billion VND, a decrease of 2% and 11% respectively compared to the previous year. This means that the company was unable to achieve the planned profit of 400 billion VND for 2023.
The results fell short of expectations mainly due to a significant decline in overall purchasing power in 2023 compared to the previous year, both in the domestic and international markets. In addition, TLG also invested in brand development and research for new products, which increased costs and impacted profitability. The company opened a new Clever Box store in Vung Tau province in the fourth quarter of 2023, making it the 6th Clever Box store.
To sum up the business performance in 2023 and vote on the development plans for 2024, TLG’s board of directors has approved the organization of the 2024 Annual General Meeting on April 23rd at 76 Le Lai Street, Ben Thanh Ward, District 1, Ho Chi Minh City. The record date is March 21st, 2024.
In the stock market, TLG’s stock price has declined for 4 consecutive sessions, reaching 46,600 VND per share (closing price on March 11th), equivalent to the bottom level at the end of December 2022.
| TLG Stock Price Movement |
