Specifically, according to the resolution dated March 8, 2024, the Board of Directors of ADS approved the business plan for 2024 with the goal of achieving over 2.4 trillion dong in revenue and over 19 billion dong in pre-tax profit, a 47% increase in revenue but a nearly 79% decrease in profit.
The main reason could be the forecasted financial expenses in 2024 exceeding 2.2 trillion dong, while in the entire year of 2023, it was only around 46 billion dong.
In terms of business activities, the company plans to produce 1,200 tons of cotton yarn, 720 tons of premium cotton towels, and 1,200 tons of handcrafted cotton towels; trade 14,400 tons of commercial cotton, and process 13,200 tons of pile yarn; construct 70 commercial houses.
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ADS’s 2024 business plan
Source: ADS
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Reviewing the 2023 business results, ADS recorded over 1.6 trillion dong in net revenue and nearly 62 billion dong in net profit, a 3% decrease in revenue but a stable profit. Moreover, with over 90 billion dong in pre-tax profit, the company achieved 82% of its profit target for the year.
Another notable point is that the total outstanding debt of ADS as of December 31, 2023, exceeded 893 billion dong, an increase of nearly 16% compared to the beginning of the year. The majority of the additional debts of the company are bank loans, with BIDV Thai Binh branch being the bank with the highest loan balance for ADS with nearly 229 billion dong by the end of 2023. In addition, the company also incurred over 16 billion dong in long-term lease finance payable to International Leasing Corporation Vietnam.
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