Thanks to the improvement in gross profit margin, Nam Kim Steel’s profit was 13.3 times higher than the same period, reaching nearly 83 billion dong. After 9 months, the company had a profit of more than 141 billion dong, 3.5 times higher than the same period and completed 71% of the year plan.
Nam Kim Steel (HoSE: NKG) has just announced the third quarter consolidated financial statements with net sales up 10% to 3376 billion. Thanks to a sharp improvement in gross profit margin to 7.2%, the company’s gross profit increased by 140% to VND242 billion.
Financial activities are less effective when revenue in the quarter decreased by 28% and financial expenses increased by 12%. SG&A expenses also increased strongly and there was no other sudden profit of over 12 billion dong like the same period.
However, the company still had a profit after tax of 13.3 times higher than the same period, reaching nearly 83 billion dong.
Unit: billion dong.
In the first 9 months, net revenue still dropped by 9% to 8142 billion dong but lower cost helped gross profit increase 165% to 562 billion dong. Despite sudden increase in expenses and no other profits, Nam Kim Steel still posted a profit of more than 141 billion dong, 3.5 times higher than the same period.
In 2020 the company sets a target of consumption output of 700000 tons, an increase of 36%; revenue of 12000 billion and profit after tax of 200 billion, more than 4 times of 2019. Thus, the company has completed 71% of the year profit plan.
According to the Vietnam Steel Association (VSA) report, the third quarter recorded a breakthrough in production and consumption of steel products after the first half of the year slowed down due to the impact of disease. Steel production reached 6.9 million tons, up 11.3%; sales reached 617 million tons, up 8.8% over the same period last year. Favorable industry context helps many steel enterprises to have extraordinary profits such as Nam Kim Steel, Hoa Phat, Hoa Sen, SMC.
Source: ndh.vn – Translated by fintel.vn
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