Although many enterprises in the textile and garment industry fell into decline or even lost money after a year of crisis because of COVID-19, there were still some businesses with positive business results.
End the pandemic year with a series of reduced numbers
In 2020, under the impact of the COVID-19 epidemic, textiles and garments are one of the industries with the greatest direct losses. This is also the main reason leading to the poor business results of many businesses in the industry.
Financial statements of the fourth quarter of 2020 of TNG Investment and Trading Joint Stock Company (Ticker: TNG) just announced that revenue in the period reached nearly 955 billion VND, down 8.6%, after-tax profit reached VND 23.1 billion, down nearly 60% compared to VND 56.5 billion in the first quarter of 2019.
According to TNG’s explanation, due to the impact of the epidemic in Europe, some customers requested a 1-2% discount from the original signed price. Besides, the provisions increased by 5 billion dong over the same period, the input expenses the company still had to maintain to pay in accordance with the regulations and signed contracts.
For employees, the company still has to arrange to maintain a job and pay salaries and benefits in accordance with the contract and state regulations. This resulted in a nearly 60% decrease in profit over the same period in 2019.
Accumulating the whole year of 2020, TNG achieved revenue of 4,484 billion VND, a slight decrease compared to 2019, however, after-tax profit dropped sharply to 152.2 billion VND, only 66% compared to 230 billion VND in 2019. .
Similarly, TDT Investment and Development Company (Ticker: TDT) has just announced the fourth quarter of 2020 financial statements with revenue and profit after tax decreased by 6% and 6.5% respectively over the same period. down 54.5 billion and 3.4 billion.
For the whole year, TDT recorded net revenue decreased by 25.5% to 272 billion dong and net profit dropped by nearly 40% to 15.7 billion dong. Compared with the plan of VND 565 billion in revenue, by the end of 2020, TDT has only accomplished half of its target.
The impact of the COVID-19 translation is even more severe when looking at the business results of Gia Dinh Textile and Garment Joint Stock Company (Code: GID). This business recorded revenue in the fourth quarter only reached more than 4.4 billion, down sharply from the number of 60.3 billion in the same period last year.
During the period, COGS dropped by more than 63%, down to 21 billion dong, selling expense also dropped significantly, to just over 2 million dong while same period last year was over 168 million dong.
Financial management expenses decreased from 10 billion VND to just over 440.8 million VND but still could not “save” the result of GID’s after-tax profit. The loss in the fourth quarter of 2020 is up to 16.7 billion dong, 3 times higher than the 5.3 billion dong loss of the same period last year.
Or Duc Quan Investment and Development Joint Stock Company (Ticker: FTM) also recorded fourth quarter of 2020 net revenue of only 36.7 billion dong, down 80.7% over the same period.
During the period, revenue from financial activities fell sharply while financial expenses increased almost 2 times from 13 billion VND to over 24 billion VND. Other activities saw a loss of nearly 22 billion dong, so FTM suffered a after-tax loss of more than 49 billion dong, slightly lower than the loss of more than 51 billion dong in the fourth quarter of last year.
According to FTM’s explanation, the revenue decreased sharply, there was no sudden change due to the impact of COVID-19 epidemic. The company’s revenue comes mainly from the production and trading of yarns of all kinds, the difficult development of the market caused the company’s revenue to drop sharply while the fixed costs incurred in the quarter such as interest borrowing, production costs.
Accumulating the whole year 2020, FTM reached 81.3 billion dong of net revenue, down sharply from nearly 1,000 billion dong in 2019, a net loss of 200 billion dong while the previous year a loss of 94.6 billion dong.
Who is still standing on the growth map?
It can be seen that the destructive power of the COVID-19 epidemic has caused many businesses to suffer. However, the reality still has bright spots emerging in the dark picture that the textile industry is facing.
The fourth quarter financial statements of Century Fiber Corporation (Ticker: STK) showed that STK’s net revenue was nearly 569 billion dong, down slightly by 1.2% YoY but gross profit in the period was nearly 100 billion VND, up 4% due to a decrease of 2.2% in COGS to about 469 billion VND.
According to STK’s explanation, the reason why the company’s fourth quarter revenue declined due to the decrease in raw material purchasing price over the same period, so the selling price decreased.
However, gross profit increased mainly due to the increase in the proportion of recycle sales (recycled fiber). In the fourth quarter of 2020, recycled yarn sales accounted for 58.4%, while the same period accounted for only 42.5% of total quarterly revenue.
During the period, financial expenses and selling expenses decreased by 31.3% and 7.6%, respectively, to nearly VND 5.6 billion and VND 7.6 billion. At the same time, in the fourth quarter of 2020, STK has no loss in associates, contributing to the net profit of more than 68 billion dong, up 28.5% compared to the fourth quarter of 2019.
For the whole year 2020, STK’s net revenue is 1,767 billion dong and after-tax profit is 143.4 billion dong, down by 21% and 33% compared to 2019. Thus, at the end of the year, STK in turn is real. currently 98% of the revenue target but nearly 10% of the profit target.
With Thanh Cong Textile – Investment – Trading Joint Stock Company (Ticker: TCM), the last quarter’s revenue in 2020 reached VND 752.2 billion, a decrease of 12% but the profit reached VND 75.6 billion, an increase of nearly 20%. compared to the same period last year. Gross profit margin improved from 17.4% to 19.1%.
Accumulated in 2020, TCM recorded revenue of 3,469.7 billion VND, a slight decrease of 4.8% but profit reached 276.2 billion VND, up 27.4% compared to the implementation in 2019. industry has completed 145.3% of the annual profit plan.
Notably, with Nam Dinh Textile and Garment Joint Stock Company (Ticker: NDT), although revenue in the fourth quarter of 2020 decreased slightly by 2% over the same period, reaching VND 302 billion. But thanks to the nearly 12% reduction in COGS to 268.6 billion VND, the gross profit of yuan increased nearly 4.5 times, reaching 33 billion VND.
The yuan’s net profit was nearly 15.5 billion dong, while the sixth quarter of last year, the yuan lost more than 10 billion dong.
According to NDT executive board, Vietnam’s textile and garment industry experienced a particularly difficult year due to the impact of the US-China trade war and the COVID-19 epidemic. However, since the middle of the fourth quarter, the yarn selling price increased so the textile and garment industry in general had a lot of prosperity.
Along with promoting product consumption, expanding markets, focusing on clearing inventory, especially fiber products; Adjusting to increase productivity and product quality to meet the needs of the consumer market has helped yuan’s fourth quarter business results change in a positive direction.
For the whole year, the total revenue of yuan reached 1,137 billion, a slight decrease of 1.3% compared to 2019, but profit after tax reached more than 3.5 billion, while last year the company lost more than 10.6 billion VND.