Hoa Phat reports highest-ever revenue, after-tax profit

Illustrative image (Source: VNA)

Hanoi (VNA) – The industrial manufacturer Hoa Phat Group posted 24.9 trillion VND in revenue in the third quarter of this year, up 62.7 percent year on year, and after-tax profit of over 3.78 trillion VND, doubling the figure recorded in the same period last year, the highest result that the firm has made in a quarter.

In the first nine months of this year, the group earned 65 trillion VND in revenue and over 8.84 trillion VND in after-tax profit, a year-on-year rise of 40 and 56 percent, respectively, surpassing the results it made in the whole year of 2019.

Steel and agricultural business made major contributions to the results. In September 2020, the group recorded highest raw steel production with 575 trillion tonnes, the highest amount so far, nearly doubling the production in the same period last year.

In the January - September period, Hoa Phat steel posted over 4 million tonnes of raw steel, two times higher than the same period last year. Of which, the sale of construction steel reached nearly 2.5 million tonnes. The remaining was steel billets and HRC. Hoa Phat’s steel market share continued to take the leading position in the country with 32.6 percent. In addition to its leading position in the local market, Hoa Phat shipped more than 370,000 tonnes, a 95 percent year-on-year rise. The total volume of steel billets supplied to customers under signed contracts was 1.25 million tonnes.

The group's total sale volume of steel pipes and galvanised steel sheet has seen relatively high growth despite difficulties due to the COVID-19 pandemic. In the first nine months of the year, its sale of steel pipe products reached nearly 570,000 tonnes, representing 3.5 percent year-on-year increase. Especially, Hoa Phat steel sheet recorded a growth of 150 per cent over the same period.

In recent years, the group’s agricultural sector continued to grow strongly, contributing about 12 percent of revenue and 15 percent of profit to the total.

Other industries and real estate sectors also contributed significantly to the group's overall business results. Hoa Phat furniture marked 25 years of development with a series of high-end office and home projects. Notably, Hoa Phat refrigeration recorded a sudden increase in profit and exceeded the plan for the whole year only after 9 months.

Hoa Phat sets a target of 86 trillion VND in revenue and 9 trillion VND in after-tax profit in 2020. With the above positive results, the group is confident to surpass the set plans, and striving to put the No. 4 blast furnace - the last item of the Hoa Phat Dung Quat Iron and Steel Production Complex into operation in January 2021./.