In Q1/2024, DRC‘s net revenue recorded over VND 973 billion, decreasing by 13% compared to the same period last year. However, the gross profit margin improved by 6.3 percentage points to 16.6%, resulting in DRC‘s gross profit reaching almost VND 162 billion, an increase of 41%.
Sales and business administration expenses put some pressure on profit, with selling expenses increasing by 30% to over VND 87 billion and management expenses up by 24% to over VND 18 billion. Finally, DRC‘s pre-tax and after-tax profits were over VND 58 billion and VND 49 billion, respectively, representing increases of 100% and 94% year-on-year.
According to the company’s explanation, the input material prices have decreased compared to the same period last year, and the increase in foreign exchange rates also benefited the efficiency of export activities.
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DRC‘s Business Results in Q1/2024 (Unit: Billion VND)
Unit: Billion VND
Source: VietstockFinance
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This result helped DRC exceed the Q1 pre-tax profit plan by 6%. Compared to the plan for the whole year of 2024 presented in the recently announced AGM document of VND 285 billion, the company has completed over 20%.
DRC also set a plan for Q2/2024 with net revenue of VND 1,347 billion and pre-tax profit of VND 79 billion, up 16% and 25% year-on-year.
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DRC‘s Q1 Performance and Q2/2024 Plan
Source: DRC
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As of March 31, 2024, DRC‘s total assets were recorded at nearly VND 3,395 billion, almost unchanged compared to the beginning of the year. Of which, inventory had a value of over VND 1,125 billion (mainly finished products, raw materials and in-process production costs) and although it decreased by 5%, it still accounted for the highest proportion of the items (33% of total assets). Regarding finished products, DRC had to set aside nearly VND 50 billion for provision.
Source: DRC‘s Q1/2024 Financial Statements
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Another item that accounts for a high proportion is short-term accounts receivable, but in contrast to inventory, it increased by 17% to nearly VND 535 billion (16% of total assets).
DRC‘s total debt increased by 12%, to nearly VND 663 billion, corresponding to 20% of total capital sources. Almost all of DRC‘s debt is short-term. On the other hand, short-term accounts payable decreased by 4% to nearly VND 515 billion, equivalent to 15% of total capital sources.
