Hoa Phat’s profits improve despite weak steel demand

By Minh Son   July 30, 2023 | 09:09 pm PT
Steel giant Hoa Phat Group reported profits of VND1.45 trillion (US$61.23 million) for the second quarter, the highest in a year, despite a decline in demand amid economic challenges.

They were nearly four times the first quarter figure though down 64% year-on-year.

Vietnam’s biggest construction steel manufacturer saw sales drop by 20% year-on-year to VND30 trillion.

For the first half, profits were 70% down year-on-year to VND1.8 trillion as revenues declined by 30% to VND56.67 trillion.

Amid weak demand both domestically and internationally, the company cut output in the first six months by 34% year-on-year to 2.86 million tons.

The company however reported a 50% increase in the production of Funiki air conditioners.

It is building a new plant, Hoa Phat Dung Quat 2, with a capacity of 5.6 million tons of hot-rolled coil steel annually.

Construction is 30% complete a year after it began, and the plant will churn out its first products in 2025.

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