Hanoi Vodka maker records 25 consecutive quarter losses

Hanoi Liquor JSC (Halico), producer of Hanoi Vodka, has posted losses for 25 consecutive quarters, with a pre-tax loss of over VND2.1 billion ($88,800) in Q2/2023.

Its Q2/2023 revenue dropped 38% year-on-year to VND19.4 billion ($820,300), according to the company’s latest financial report. The sale of finished alcohol products, which accounts a major part of its total revenue, went down nearly 44% year-on-year to VND18.5 billion ($782,100).

As of June 30, the company had recorded an aggregate loss of VND473 billion ($20 million).

In the first half of the year, Halico’s net losses amounted to VND3.4 billion ($256,000), down by half compared to the same period last year, against net revenues of VND47.8 billion ($2.02 million), down 21% year-on-year.

As of June, Halico's total assets value stood at VND363.6 billion ($15.37 million), down more than VND2 billion ($84,600) compared to the beginning of the year. Cash and bank deposits accounted for 28% of assets at VND103 billion. Inventories and fixed assets reached VND100 billion ($4.2 million) and VND97.6 billion ($4.1 million), respectively.

For the whole year, Halico expects to lose VND13.4 billion ($566,500) against revenues of VND215.4 billion ($9.1 million).

In 2011, Diageo, one of the world's largest wine producers, spent VND1.8 trillion ($76.86 million) to acquire 45.57% of Halico.

Halico was originally established by the French colonial administration in 1898.

The company, registered on the unlisted public company market UPCoM as HNR, closed Friday at VND12,000 ($0.5) per share.