HBC’s consolidated financial statements for Q1 2025 reported a 58% year-over-year decrease in net revenue to VND 692 billion. However, a more significant reduction in cost of goods sold, down by 61%, resulted in a gross profit of nearly VND 53 billion, a 2.5-fold increase. HBC attributed this contrast to challenges in the construction market and macroeconomic impacts, which led to lower revenue, but their restructuring efforts significantly reduced costs.
Another positive aspect was HBC’s reversal of nearly VND 40 billion in management expenses (compared to VND 21 billion in the previous period) due to a reversal of over VND 104 billion in provisions for doubtful accounts.
Despite these improvements, several factors hindered HBC’s performance in Q1. Notably, financial income plummeted by 90% to nearly VND 11 billion, as there was no gain on the sale of investments this period, which amounted to over VND 109 billion in the previous year. Although financial expenses decreased by 3%, they still totaled VND 97 billion, surpassing the gross profit.
Consequently, HBC recorded a minor loss of VND 127 million in Q1. Other income of nearly VND 10 billion from the disposal of machinery and equipment helped the company end the first quarter with a net profit of over VND 5 billion, a 91% decline from the previous year. With this profit, HBC has achieved only 2% of its full-year target of VND 330 billion set for 2025.
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HBC’s Q1 2025 Financial Results in VND billion
Source: VietstockFinance
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Commenting on HBC’s Q1 results, CEO Le Van Nam at the 2025 Annual General Meeting shared that the construction industry typically experiences relatively low performance in the first quarter due to holidays and seasonal fluctuations. Additionally, prolonged breaks taken by Vietnamese workers contribute to generally lower performance in Q1 compared to other quarters. The management team will implement solutions to accelerate progress and achieve the set goals.
On the balance sheet, HBC’s total assets as of March 31, 2025, stood at over VND 15,100 billion, a 2% decrease from the beginning of the year. Short-term cash holdings and receivables decreased by 46% and 7%, respectively, to nearly VND 152 billion and over VND 10,200 billion. Conversely, inventories and fixed assets witnessed significant increases of 19% and 22%, reaching nearly VND 2,800 billion and over VND 1,000 billion, respectively.
Similar to total assets, total liabilities also decreased by 2% to nearly VND 13,400 billion. This reduction was mainly due to a 6% decrease in borrowings, which amounted to nearly VND 4,100 billion.
Ha Le
– 11:36 05/07/2025
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