Coteccons sales plummeted
VietReader 31-10-2020, 00:15

In the third quarter of 2020 Coteccons reached 89 billion dong of profit after tax, down 46% year-on-year and recorded the lowest quarterly profit since Q2 /2015 up to now.


Coteccons Construction Joint Stock Company (Ticker: CTD) has announced the third quarter of 2020 consolidated financial statements, recording a sharp decline in both revenue and profit.


In the third quarter, Coteccons reached 2776 billion dong of net revenue, 89 billion dong of profit after tax; decrease by 55% and 46% respectively over the same period in 2019.


However, the company’s gross profit margin was improved to 6.1% in the period compared to 4.1% in the third quarter of 2019 and equivalent to the figure of the second quarter.


Since the beginning of 2019 Coteccons’ business results have been declining, even the point of profitability of the business is usually in the third or fourth quarter of the year, but in the fourth quarter of 2019 Coteccons’s profitability is even lower than the fourth quarter/2015.


Quarter III /2020 recorded the lowest profit after tax and revenue of Coteccons since the second quarter of 2015 up to now.






Source: H.K compiled from the consolidated financial statements


In the first 9 months of the year, Coteccons reached 10301 billion dong of net revenue, 369 billion dong of profit after tax; decreased by 37% and 23% respectively over the same period last year.


In 2020 Coteccons sets a consolidated revenue target of VND 16000 billion, and consolidated profit after tax of VND 600 billion belonging to parent company’s shareholders.


Thus, after 9 months, Cotecccons has fulfilled 64% of the revenue plan and 61% of the annual profit target. EPS in the last 4 quarters reached nearly 8000 VND.





Source: H.K compiled from the consolidated financial statements of quarter III /2020


As of September 30 the total assets of Coteccons reached 14056 billion dong, down 2143 billion dong from the beginning of the year.


Total cash, cash equivalents and term deposits in the third quarter of the company reached 3557 billion dong, down 125 billion dong from the end of the second quarter and 485 billion dong from the beginning of the year.


Coteccons’ short-term receivables reached VND 7454 billion, down 15% compared to the beginning of the year and had to make provisions up to VND219 billion.


Regarding capital structure, liabilities as of September 30 are 5546 billion dong, equity is 8510 billion dong. Businesses continue to maintain a leverage strategy.


Cash flow from operating activities in the quarter was negative VND 434 billion, down from the negative figure of VND 514 billion in the previous year.


The third quarter is also a quarter to recognize a great change in the senior staff of Coteccons when Mr. Nguyen Ba Duong and the former leaders under his rule left.


Mr. Bolat Duisenov – Co-Founder and CEO of Kusto Vietnam (member of Kusto Group) has become Chairman of Coteccons Board of Directors since October 5.


A few days after Mr. Duong resigned, Mr. Nguyen Quoc Hiep sent his resignation as a member of the Board of Directors.


Earlier, in early August, Coteccons also approved resignations of two senior leaders, Nguyen Sy Cong – General Director, Mr. Tran Quang Quan – Deputy General Director. At the same time, the Board of Directors has appointed Mr. Vo Thanh Liem as acting General Director.


Currently, Coteccons’s Board of Directors has members from foreign shareholders: Mr. Bolat Duisenov – Chairman of Coteccons, Mr. Yerkin Tatishev (Chairman of Kusto Group), Mr. Talgat Turumbayev (Director of Kusto Group), and Mr. Herwig Guido H. Van Hove (Director The 8th Pte Ltd) and Mr. Tan Chin Tiong (Singapore) – Independent Member of the Board of Directors.


Source: vietnambiz.vn – Translated by fintel.vn

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