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DGC’s Business Indicators in Q1 2024
Source: VietstockFinance
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In the first quarter, DGC reached nearly 2.4 trillion VND in revenue, down 4% year-on-year. The cost of goods sold went up in the opposite direction, increasing by 2% to over 1.6 trillion VND. Accordingly, the gross profit of the enterprise decreased by 14%, to 766 billion VND.
Various expense segments did not significantly affect the final result. The chemical giant ended the first quarter with a net profit of 673 billion VND, 15% lower than the same period last year. This is also DGC’s lowest profit since the third quarter of 2021.
According to DGC, the decline in revenue was the main reason for the decrease in results during the period. Specifically, although revenue from fertilizers, DAP, detergents, and cleansers increased, revenue from yellow phosphorus and H3PO4 decreased by 7%. The selling prices of these items fell due to declining domestic and international markets.
DGC’s 2024 General Meeting of Shareholders approved a plan for revenue of over 10 trillion VND and after-tax profit of 3.1 trillion VND. With the above results, the chemical giant achieved 23.4% of its revenue target and nearly 23% of its after-tax profit target after the first quarter.
Despite the decline in results, DGC’s financial picture remains positive. At the end of the first quarter, the company recorded over 14 trillion VND in total assets, a decrease of 7% compared to the beginning of the year. Most of it is in current assets (nearly 11.5 trillion VND, down 8%).
It is worth noting the “cash mountain” of nearly 9.6 trillion VND, most of which is deposited in short-term savings. This amount brought DGC over 165 billion VND in financial revenue in the first quarter.
The ending inventory recorded 859 billion VND, a slight increase compared to the beginning of the year. The cost of construction in progress at the end of the period decreased by 21%, to 177 billion VND, mainly in the Nghi Son Project.
On the capital front, the enterprise’s liabilities decreased by nearly 50%, to over 1.9 trillion VND, most of which is short-term debt, including a 31% decrease in borrowings to nearly 921 billion VND. However, with a “cash mountain” of nearly 9.6 trillion VND in possession, these debts are not a problem for the chemical giant.
