Hoa Phat Group reported a 212% increase in after-tax profit for Q3 2023 despite a 16% decrease in revenue compared to last year. In the first nine months, the group achieved a revenue of $3.7 billion and an after-tax profit of $164 million. This marks 48% completion of its annual target.
In the third quarter of 2023, Hoa Phat Group witnessed contrasting financial metrics. While the revenue dropped by 16% year-on-year to stand at $1.24 billion, its after-tax profit shot up by 212% over the same period last year, totaling $86 million. For the first nine months, the group's revenue was $3.7 billion, a decrease of 27% over last year. However, it realized an after-tax profit of $164 million, making it almost halfway to its annual target.
Stable raw material prices and a gradual increase in sales output helped Hoa Phat offset the revenue decline. The sales of steel products in the third quarter rose by 12% compared to the second quarter and 24% over the first quarter of this year. Efficient inventory management also played a role in bolstering the profit margins.
Production numbers were a mixed bag. In the first three quarters of 2023, Hoa Phat Group produced 4.8 million metric tons of crude steel, showing a 21% decline year-on-year. Sales output of steel (excluding steel pipe and galvanized steel products) reached 4.6 million metric tons, down by 19% compared to last year.
Hoa Phat continues to dominate the Vietnamese steel market. By the end of Q3 2023, the group had a market share of 33.3% in construction steel and 27.3% in steel pipes. Additionally, Hoa Phat Steel Sheet JSC ranks among the Top 5 largest manufacturers in Vietnam.
The company isn't just focused on steel. Starting August, Hoa Phat began providing container products, which garnered attention and orders from international logistics and container rental companies. It also launched new home appliances like large freezers and water purifiers, available at Dien May Xanh system and electronics supermarkets nationwide.
In the agricultural sector, Hoa Phat Group has optimized its animal feed factories and livestock farms across the country. The aim is to maintain its leading position in the supply of clean chicken eggs and commercial pigs.
Going forward, Hoa Phat Group plans to adapt to the challenging domestic and global economic landscape. Priority will be given to manage inventory and align production with market conditions. The group will also closely monitor large projects, such as the Dung Quat 2 Iron Steel Integrated Complex, to ensure effective control.
Despite facing revenue setbacks, Hoa Phat Group has shown resilience by significantly boosting its profits. Leveraging efficient management and diversification, the company has not only maintained but also intends to expand its footprint in various sectors. As it looks to navigate through economic uncertainties, the Hoa Phat Group appears well-prepared to meet challenges head-on.