Hoa Phat Group achieved VND34.4 trillion revenue in Q3

In the third quarter of 2022, Hoa Phat Group achieved revenue of VND34.4 trillion, decreased 12 per cent compared to the same period last year. Its after-tax profit was at negative VND1.7 trillion, posting 117 per cent year-on-year decrease. In the first 9 months of the year, Hoa Phat Group achieved VND116.5 trillion in revenue and VND10.4 trillion in after-tax profit, reaching 76 per cent and 39 per cent of the whole year plan respectively. Steel and related products contribute over 90 per cent of the group's revenue and profit.

The above business results were due to weak steel demand in both the country and the world. Meanwhile, raw material prices, especially coal prices are three times higher than normal times. In addition, the credit was tightened, exchange rate and interest rates rose sharply.

Hoa Phat Group produced more than 6 million tons of crude steel in the first 9 months of 2022, equivalent to the same period in 2021. Sales volume of construction steel products, HRC and steel billet reached 5.7 million tons, up 3 per cent compared to the same period last year. Construction steel recorded 3.4 million tons after 9-month period, posting 24 per cent year-on-year increase. Of which the export market contributed more than 1 million tons, equivalent to the whole year of 2021. In the 9 months of 2022, the export market contributed more than 1 million tons, equivalent to the whole year of 2021.

Hoa Phat Group's market share has been expanded from 32.6 per cent to 36 per cent for construction steel, from 24.7 per cent to 29 per cent for steel pipes and continued to be maintained in the third quarter of 2022.

Weak steel demand and high raw material prices...have greatly affected Hoa Phat Group's 3rd quarter business results

With the hot-rolled coil product line, the group supplied to domestic and foreign markets more than 2 million tons, up 5 per cent compared the corresponding period last year and contributing 36 per cent of Hoa Phat's overall output over the past time. HRC downstream products are steel pipes reaching 577,000 tons, up 16 per cent; coated steel sheet of all kinds recorded 249,000 tons, slightly down compared to the same period last year.

In the third quarter of 2022, revenue and profit from agriculture increased by 10 per cent and 32 per cent compared to the same period last year respectively. In the first 9 months of the year, this segment was profitable again.

Hoa Phat Group has just launched a number of new products in the field of home appliances, notably water purifiers. The group is currently accelerating the completion of the production center project of refrigeration and home appliances in Ha Nam province and Ba Ria-Vung Tau province.

The Dung Quat 2 project with an output of 5.6 million tons of HRC is being implemented on schedule.

HPG News