Largest Cement Producer in Southern Vietnam Reports Lowest Profit in 10 Years
Vietnam's largest cement producer, Vicem Ha Tien, has reported its lowest profit in 10 years, according to its consolidated financial report for Q4 2023.
The company's net revenue reached VND 1.783 trillion ($78.3 million), a 23% decrease compared to the same period in 2022. The decrease in profit is attributed to a 17% decrease in cement consumption in Q4 2023, which led to a 30.2 billion VND ($1.3 million) decrease in gross profit.
For the entire year of 2023, Vicem Ha Tien's net revenue was VND 7.049 trillion ($309.7 million), a 20% decrease compared to the previous year. The company's net profit after tax decreased by 94% to VND 17.1 billion ($750,000), mainly due to the increase in cost of goods sold.
The company's financial performance was affected by slow project implementation and oversupply in the cement market. In addition, input costs such as electricity and coal are expected to increase in 2024.
Source: S Money
