Hoa Phat Group business results improved in 1st quarter of 2023

In the first quarter of the year, Hoa Phat Group achieved revenue of VND26.8 trillion, reducing 39 per cent compared to the same period last year. Its consolidated after-tax profit reached VND383 billion, reaching 5 per cent of the set plan in 2023. Steel production and related products are still the main force and contributes 94 per cent of the group's after-tax profit.

In the first quarter of the year, Hoa Phat Group supplied 1.37 million tons of construction steel, hot rolled coil (HRC) and steel billet to the market

In the context that demand has not been improved, the above results showed that Hoa Phat Group's business situation has been more positive when compared to the last two quarters of 2022. The group’s inventory management, raw materials and flexible sales according to market movements has been effective.

In the first three months of the year, Hoa Phat Group produced 1.2 million tons of crude steel, down 42 per cent compared to the same period in 2022. Sales volume of construction steel, steel billet and HRC reached 1.37 million tons, posting 37 per cent year-on-year decrease.

In the three-month period, construction steel reached 869,000 tons, decreasing 35 per cent over the corresponding period last year. Hoa Phat Group continued to lead the construction steel market with 34 per cent market share. Hot rolled coil sales reached 482,000 tons, equivalent to over 60 per cent against the same period last year. Hoa Phat Group also provides over 26,000 tons of steel billet for other steel mills in Vietnam. In addition to the domestic market, the group has exported construction steel to nearly 30 countries and territories around the world. Hoa Phat's HRC received many orders from Asia and Europe.

Its steel pipe and galvanized sheet products supplied to the market in the past 3 months were 160,000 tons and 69,000 tons, respectively, reducing 23 per cent and 34 per cent respectively compared to the first 3 months of 2022. Hoa Phat holds the number 1 in term of steel pipe market share in the country, while its galvanized steel products are in the Top 5.

Other fields of activity including Agriculture, Real Estate and Home Appliances continued to develop according to the set orientations and plans. In the agricultural sector, Hoa Phat’s chicken eggs lead in consumption volume in the North. Pig farms keep the herd size to supply the market. The real estate segment is focusing on completing legal procedures for urban real estate projects, and at the same time expanding Yen My II Industrial Park.

Regarding to household appliances, Hoa Phat Group has expanded production and multi-channel sales. In which, the group has completed and put into operation a refrigerator and freezer factory with a capacity of 375,000 products a year in the expanded Phu My II Industrial Park. Its air conditioner products are well received at major supermarkets across the country. Hoa Phat’s water purifiers and air coolers are also being promoted in many different distribution channels.

In the second quarter of the year, the market situation is still expected to have difficulties. The group will focus its resources on investing in the Hoa Phat Dung Quat 2 Steel Integrated Complex project, and at the same time restore the steel production output in Hai Duong and Quang Ngai provinces depending on market demand to ensure reasonable inventory.

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