Vietnam’s major steel producer, Hoa Phat Group posted a revenue of VND 29,800 bln (USD 1.25 bln) in Q2 2023, showing a decline of 21pct compared to the same period in the previous year.
The company’s profit after tax amounted to VND 1,448 bln (USD 61 mln), witnessing a significant decrease of 64pct from the same period last year. However, the profit was 3.78 times higher than that of the first quarter of 2023.
In the first half of the year, Hoa Phat accumulated a revenue of VND 56,665 bln (USD 2.39 bln) and a profit after tax of over VND 1,830 bln (USD 77 mln), reaching 23pct of its annual target.
The challenging economic conditions, both domestically and internationally, contributed to Hoa Phat Group’s decrease in production and sales. Specifically, the production of crude steel amounted to 2.86 mln tons, marking a 34pct drop compared to the same period in the previous year. Additionally, sales of construction steel, billet, and HRC reached 2.9 mln tons, declining by 27pct compared to the first six months of 2022.
Hoa Phat’s performance in various sectors also experienced a downturn. The production of construction steel decreased by 30pct, with a total output of more than 1.6 mln tons in the first half of the year. Moreover, the supply of HRC to both domestic and foreign markets reduced by 15pct, totaling 1.2 mln tons. The export of products to Europe and Asia continued, but at a slightly lower level, with steel pipes and corrugated iron achieving outputs of 325,000 tons and 175,000 tons, respectively.
In addition to these figures, Hoa Phat also faced a 37pct decline in the marketing of nearly 50,000 tons of prestressed steel (PC Bar, PC Strand, PC Wire) in the first half of 2023 compared to the same period in the previous year.
1 USD / 23,701 VND
