Liabilities at the end of the first quarter of this enterprise reached VND 1,374 billion, an increase of nearly 11% compared to the beginning of the year and 1.46 times of equity.
Viet Duc Steel Pipe Joint Stock Company VG PIPE (stock code: VGS) has just announced the consolidated financial statements for the first quarter of 2023 with net revenue of VND 2,122 billion, down 15% over the same period. Similarly, COGS decreased by 15%, leaving gross profit remaining 42 billion dong, "going backward" 38% over the same period. Gross profit margin of Viet Duc steel pipe shrank to only 2%.
Although financial revenue increased sharply in relative value, it was only recorded at half a billion dong. Meanwhile, financial expenses increased by 47% to more than 9 billion dong, all of which was loan interest.
Deducting other expenses, VGS reported after-tax profit of 14 billion dong, a sharp decrease of 66% compared to the first quarter of 2023.
Entering 2023, the enterprise sets a target of consolidated revenue of VND 7,000 billion and pre-tax profit of VND 90 billion.
Thus, after the first quarter of business, VGS has completed 30% of the revenue target and nearly 19% of the profit target.
As of March 31, 2023, the company's total assets reached VND 2,314 billion, an increase of VND 149 billion compared to the beginning of the year. In which, inventories increased sharply to nearly 160 billion dong, recording a value of more than 591 billion dong; mainly due to a sharp increase in raw materials, finished products and on-the-go purchases also increased by several tens of billion dong. Cash and cash equivalents dropped sharply by 74% to VND50 billion; All cash is in the company's cash.
On the capital side, liabilities at the end of Q1 reached VND 1,374 billion, up nearly 11% compared to the beginning of the year and 1.46 times of equity.
It is known that Viet Duc Steel Pipe specializes in manufacturing and supplying black welded steel pipe products; hot-dip galvanized steel pipe; galvanized corrugated iron pipe and galvanized steel coil,.. with a capacity of 600,000 tons/year. VGS is in the top 6 factories producing and consuming steel pipes and the top 5 largest construction steel manufacturers in Vietnam. According to Annual Report 2022, the market share of VGS accounts for 5.53% of steel pipes and 4.6% for construction steel.
