TTC Sugar (SBT): In the 2019-2020 period, sugar consumption exceeds 1 million tons
admin 6-08-2020, 13:19

TTC Sugar (SBT): In the 2019-2020 period, sugar consumption exceeds 1 million tons

(ĐTCK) In the period of 2019-2020, Thanh Thanh Cong Bien Hoa Joint Stock Company (TTC Sugar, stock code SBT – HOSE) successfully sold 1.06 million tons of sugar, up 41% over the same period.

Net revenue recorded VND 12,850 billion, up more than 18% over the same period and reached 118% of the plan. In particular, sugar still plays a key role in revenue structure when sugar products recorded revenue of VND 12,035 billion, accounting for 94% of the proportion, up 27% over the same period.

The Company’s gross profit for the period of 2019-2020 reached VND 1,403 billion, an increase of 61% over the same period. Gross profit margin is also notable when there were improvements of 11%, an increase of 36% over the same period.

Meanwhile, general and administration expenses were controlled well by the Company, specifically, the cost of corporate management was lower than the same period of VND 57 billion, equivalent to a decrease of 13%, while the proportion of General and administration expenses / net revenue also dropped by 26% to only 3%.

Thereby, profit before tax reached more than 504 billion, up 20% over the same period and reached 117% of the plan. Profit after tax reached VND 372 billion, up 44% over the same period.

This is a remarkable result of SBT in the context that the Sugar industry has not had many positive developments due to cyclicality, challenges from ATIGA integration as well as significant impacts caused by the Covid-19 pandemic.

As of June 30, 2020, total assets of TTC Sugar reached VND 18,063 billion, an increase of 8% compared to the beginning of the year, mainly from short-term and long-term financial investments reflect the orientation of restructuring the financial system that the Company has set out with the aim of diversifying revenue sources and making the most of the available strengths of the Company.

Inventories were well controlled when this target decreased by more than 9%, equivalent to VND 258 billion and maintained at VND 2,523 billion, accounting for only about 14% of total assets, down 16% compared to the beginning of the year.

With the roadmap to restructure capital sources to optimize, the Company’s liabilities decreased by 484 billion VND, equivalent to 4% reduction from short-term debt reduction of 5%, equivalent to 334 billion VND and long-term debt 23% decrease of term, equivalent to VND 416 billion.

The Company’s debt as of June 30, 2020 decreased by 8%, equivalent to VND 750 billion, the debt / equity ratio and the debt / total asset ratio were 1.1 times and 0.5 times, respectively 30% and 15% lower than the beginning of the year.

The solvency ratios maintained by the Company at a safe level to limit risks and ensure working capital for business operations in which the current ratio increased by 4% to 1.1 times, Quick payment increased by 9%, reaching approximately 0.9.

SBT is currently the company with the most and most diversified product lines in Vietnam with over 50 lines including 16 RE lines, 14 RS lines, 6 Golden lines, 5 Alum lines, 5 Function lines, 4 Organic line and 2 Liquid lines, serving almost all the arising needs of all customer groups from key channels of B2B, B2C, export and trade.

With a long-term strategy of diversifying the sugarcane value chain, minimizing revenue risks when world sugar prices fluctuate, the Company has also been exploiting 5 products on sugar cane juice, bagasse, biomass power, molasses and compost.