Bedding company Everpia records 54% plunge in Q1 profit

Everpia JSC, owner of South Korean bedding brand Everon, reported after-tax profit of VND6.8 billion ($290,000) in the first quarter of this year, up 54% year-on-year.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as EVE, earned net revenue of VND149.7 billion ($6.37 million) in the period, down 22%, according to its consolidated financial statement.

Everpia said that the revenue of its three main product lines all decreased over the same period last year due to market difficulties. Business activities witnessed strife both domestically and in exports.

"The bedding segment, which accounts for 60% of the company's profit, decreased by 35% due to a sharp drop in consumer purchasing power and agents prioritizing inventory clearance while limiting taking in goods before entering the new season," it said.

As of March 31, the company's total assets had reached VND1.52 trillion ($64.86 million), down 5% from the beginning of the year, of which cash and cash equivalents hit VND49.9 billion ($2.1 million), down 9%.

Everon has been a leading Korean bedding brand in Vietnam for more than 20 years with more than 600 exclusive agents nationwide.

EVE sets a revenue target of VND1.1 trillion ($46.84 million) and post-tax profit of VND55 billion ($2.34 million) in 2023.

At the annual general meeting of shareholders on April 27, Everpia said that the company had about VND450 billion ($19.16 million) in cash and short-term investments, of which about VND200 billion ($8.5 million) was loans to invest in the construction of Giang Dien factory in Giang Dien Industrial Park, Dong Nai province. The remaining amount was a reserve for future investment activities and maintaining the sound financial health of the company.

On the HoSE, EVE shares finished at VND18,500 ($0.79) per unit at Friday's close, up 30% compared to the beginning of May.