Coteccons profits plunge by half, blames higher costs

By Phuong Dong   May 4, 2021 | 08:08 pm PT
Coteccons profits plunge by half, blames higher costs
A Coteccons construction project in Hanoi. Photo courtesy of the company
Construction giant Coteccons saw post-tax profits fall 56 percent year-on-year to VND54 billion ($2.3 million) in the first quarter.

It blamed the fall on a 10 percent rise in operating expenses.

Revenues were down 28 percent to VND2.57 trillion as many construction projects were delayed due to the Covid-19 pandemic, it said.

It has set revenue and post-tax profit targets of VND17.4 trillion and VND340 billion for 2021, 20 percent and 2 percent up from last year.

To achieve the targets, it has to sign new contracts worth VND21.5-25 trillion this year, according to deputy CEO Michael Tran.

The company and its construction subsidiary Unicorns signed 10 contracts during the quarter worth VND2.5 trillion.

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