Textile giant Vinatex's 2022 profit shrinks 19%

Vietnam's largest textile and garment maker Vinatex reported an after-tax profit of VND1,069 billion ($45.58 million), down 19% year-on-year.

The major achieved net revenue of more than VND18,364 billion ($783.13 million) last year, up 14.8% against 2021, according to the company's financial report.

In the fourth quarter of 2022, the company recorded net revenue of VND4,156 billion ($62.09 million), up 15%, and a loss of over VND5.2 billion ($221,754), the first quarterly loss since its equitization in 2014.

Vinatex said the reasons included China's "zero-Covid" policy and lower import demands in some markets at the end of the year.

In order to ensure the principle of prudence, yarn companies of Vinatex have fully made provisions covering their inventories, and the provisions were booked in the fourth quarter. Due to this, such losses were seen in the quarter.

As of the end of 2022, Vinatex's total assets were more than VND20,222 billion ($862.37 million), similar to that at the beginning of the year. Its inventory total was VND4,031 billion ($171.9 million), up 20%.

As of December 31, 2022, the company's total liabilities were more than VND10,659 billion ($454.55 million), down 4% compared to the beginning of the year. Of this, short-term loans hit more than VND4,163 billion ($177.53 million), up 18%, and long-term loans were more than VND2,979 billion ($127.04 million), down 12%.

Vinatex is listed on the Unlisted Public Company Market as VGT. At the Friday closing session, the VGT share price was VND12,100 ($0.52).