Hoa Phat net profit totaled VND 2,300 billion in the first quarter of 2020

By the end of the first quarter of 2020, Hoa Phat Group recorded relatively positive business results in the context of the complicated Covid-19 pandemic. The revenue in the period totaled 19,450 billion VND and profit after tax reached 2,305 billion VND, respectively increasing 28% and 27% compared to the same period of 2019. Steel and agriculture sectors are two main forces pushing such significant growth. 

In the first 3 months of the year, Hoa Phat Group successfully taken all required measures to prevent the infectious Covid 19 pandemic while maintaining the normal business and production activities.

Accumulated in the first quarter of 2020, Hoa Phat construction steel has supplied to the market over 732,000 tons (excluding steel billet production), a slight increase over the same period and accounting for 31.9% of the domestic market. In which, the amount of finished steel products exported nearly 135,000 tons, a lift of 74.8% over the same period last year. Hoa Phat also produced about 350,000 tons of billet, mainly for exporting to the key markets like China and Southeast Asian countries.

In March, Hoa Phat construction steel scored a record of supplying 486,000 tons finished steel and steel billet to both local and international markets. The export of finished construction steel increased 2,5 times over the same period and sales in the South rose by 89.7%.

Hoa Phat Steel Pipe provided the market nearly 145,000 tons of finished product and hold the market share of 31.1%, which reinforces the No.1 position for the company. In the 1st Quarter of 2020, Hoa Phat Steel Pipe were exported to various countries and the total volume soared amazingly 2,5 times over the same period of last year. Exporting volume of March only exceeds the export of January and February combined. This is a remarkable achievement amid the negative impact of Covid 19 pandemic, the significant shrink of market demand and the price go down of HRC.

Other industries such as furniture and refrigeration and real estate protect jobs and incomes for employees. The products of Hoa Phat Refrigeration such as air conditioners, freezers and refrigerators all increased sharply, contributing to increase the output and sales of Hoa Phat Refrigeration by 57% compared to the same period in 2019.

Hoa Phat Group’s main target is to put the hot rolled coil line of Hoa Phat Dung Quat Steel Integrated Complex project into operation this year. Phase 2 has been delayed due to force majeure reason - the Covid-19 pandemic that prevented European contractors from traveling to Vietnam according to initial expectations.

Nghi Tran