TOTO recorded a sale revenue of VND2,936 billion ($124.3 million) in Vietnam from April-December 2023, the first three quarters of its fiscal year 2023, down 12% year-on-year.
According to the sanitary ware company’s latest financial statement, its operating profit in the nine-month period went down to VND12 billion ($507,940), equivalent to 4.5% of that in the same period of 2022. As a result, TOTO’s operating margin was 0.4% during April-December 2023, a fraction of the 8% recorded during April-December 2022.
TOTO attributed the underperformance to deteriorating market conditions and inventory adjustments activities in the period.
Globally, in the period, TOTO made an operating profit of JPY32,909 million ($220.8 million) on a sale revenue of JPY524,765 million ($3.52 billion), down 24.5% and 0.5% year-on-year, respectively.
TOTO, founded in 1917, entered Vietnam in 2002 with the construction of its first Vietnam factory in Hanoi. The Japanese firm now runs five Vietnam plants in Hanoi and the neighboring provinces of Hung Yen and Vinh Phuc.
The Vinh Phuc faucet factory is TOTO’s latest addition in Vietnam, with an investment of JPY10 billion ($67.7 million). Located in Thang Long III Industrial Park, the factory is part of the firm's commitment to Vietnam’s sustainable development, it said. The 10-hectare plant has an annual capacity of 1.2 million products.