Viglacera, Vietnam's leading producer of building materials, reported after-tax profit of VND777 billion ($32.8 million) in the first six months of 2023, down 46% year-on-year.
The company, listed on the Ho Chi Minh Stock Exchange as VGC, earned net revenue of VND6.7 trillion ($283 million) in the period, down 17%.
Of which, sales revenue reached VND3.76 trillion ($158.8 million), mostly from selling ceramic products with nearly VND1.56 trillion ($65.75 million), glass and mirror products with more than VND964 billion ($40.7 million), and brick and tile products with nearly VND623 billion ($26.3 million). Service revenue hit VND2.93 trillion ($123.88 million), mainly from land rental fees for infrastructure development.
In the second quarter of 2023, Viglacera posted net revenue of nearly VND3.93 trillion ($165.88 million), down 8% year-on-year, and after-tax profit of VND625.6 billion ($26.4 million), down 9%.
As of June 30, VCG's total assets stood at VND23.16 trillion ($977.8 million), of which cash and cash equivalents hit VND2.39 trillion ($101 million) and inventories were VND4.67 trillion ($197.2 million).
The state is the majority shareholder in Viglacera with a 53.97% stake.
VGC has set a revenue target of VND16 trillion ($681.12 million) for this year, up 10% year-on-year; and a pre-tax profit goal of VND1.3 trillion ($55.34 million), down 44%. The company is expected to pay a dividend rate of 20%, the same as last year.
The corporation has plans to survey and develop several new industrial parks (IPs). By 2025, it will have increased the total number of IPs under the Viglacera brand to 20 with over 10 new IPs covering 2,000-3,000 hectares.
The main building materials that Viglacera produces include My Xuan porcelain, Binh Duong porcelain, ceramic tiles and bricks, and building glass (Viglacera Float Glass Binh Duong Company and Phu My Ultra Clear Float Glass Co., Ltd).
VGC shares closed Thursday morning at VND47,850 ($2) per unit.