National textile group Vinatex earns $42 mln in H1 profit

The largest Vietnamese garment maker Vinatex earned a pre-tax profit of VND980 billion ($42 million) in the first half of the year, up 55.6% year-on-year and exceeding the whole year’s target by 3%.

The group, registered on the unlisted public company market UPCom as VGT, reaped a consolidated revenue of VND10,295 billion ($441 million) in the period, up 38% year-on-year, meeting 57% of the whole year’s target.

Subsidiaries where Vinatex holds the majority stake accounted for 68.4% of its H1 revenue, while other affiliates made up 31.6%.

The first group of companies accounted for 68.4% of Vinatex's profit, up from 55.6% in the same period last year.

All business lines of Vinatex recorded growth in revenue and profit in H1. Yarn and fiber grew 31% in revenue and 49% in profit, respectively. The figure for garment is 27% and 140%.

Opportunities in H2/2022 include China’s possible economic reopening in Q3, higher demand for yarn and fiber, lower cotton prices, better exchange rates for exporters, among others, according to the group's financial report.

It also listed risks for the rest of the year, including surplus stock, stagflation of the global economy, higher interest rates, and lower consumption.

For 2022, Vinatex targets to earn a consolidated profit of VND951 billion ($40.7 million) on a consolidated revenue of VND18,067 billion ($773.6 million), equivalent to 65.3% and 106.4% of 2021 achievements, respectively.