Minh Phu Seafood (MPC) had revenue of VND2.2 trillion, a 50 percent decrease compared with the same period last year. The profit margin decreased from 11 percent to 6 percent, while the cost for loan interest increased by three times, leaving MPC’s post-tax profit at minus (-) VND98 billion (it made a profit of VND91 billion the same period last year).

The unsatisfactory business results in the first quarter of 2023 will make it more difficult for MPC to obtain targeted revenue of VND18 trillion this year and post-tax profit of VND1.145 trillion.

As of the end of March, MPC’s total assets and debts had decreased by VND1 trillion to VND9.5 trillion and VND3.8 trillion, respectively.

Dabaco Vietnam (DBC), a big player in the animal husbandry sector, has also reported a loss for the first quarter with net turnover of VND2.313 trillion, down 17 percent. As cost prices exceeded receipts, profits from sales and services were minus VND70 billion.

After deducting expenses on bank loan interest, and sales and business administration costs, DBC’s post-tax profit was minus VND320 billion.

By the end of the first quarter 2023, the total liabilities of DBC had decreased by 6.2 percent to VND7.8 trillion. 

Though the debts the company had to pay sellers dropped by half to VND1 trillion, the debts in financial loans were still high, VND4.29 trillion, up 15.8 percent, and expenses for workers were VND71 billion, up 9.5 percent.

Besides, DBC’s farming costs increased, while the purchasing power decreased and the selling prices of products stood at low levels for a long time, which led to the unsatisfactory business results.

Explaining this, DBC said the economy in the first quarter was affected by adverse effects in the post-Covid period and the global economic recession risk.

Loc Troi Group, the most famous rice producer in Vietnam, unexpectedly reported a post-tax loss of VND81 billion, while it made a profit of VND184 billion in the first quarter of 2022.

This was attributed to the higher cost price, higher financial costs (VND147 billion, twice as much as the same period last year) and higher business management cost (+VND13 billion).

Thanh Thanh Cong-Bien Hoa, a big sugar manufacturer, did not take a loss in the 2022-2023 fiscal year, but reported the 27 percent decrease in profit. The business result proves to be a surprise in the context of the sugar price increase in the world, reaching the 11-year peak.

Manh Ha