Cooking oil company Tuong An (TAC) sees profit up, revenue down this year
Cooking oil manufacturer Tuong An Vegetable Oil Joint-Stock Company (TAC) earned net revenue of VND1.7 trillion (US$73 million) and pre-tax profit of VND101 billion in the first nine months of this year.
Although revenue decreased by 15 per cent during that period, pre-tax profit increased by 47 per cent. Post-tax profit reached VND81 billion, also up 47 per cent.
As for this year, the company sets a net revenue target of VND3.85 trillion, pre-tax profit target of VND136 billion. Therefore, the nine month results complete 45 per cent of revenue target and 74 per cent of profit target.
The company reported a 72-per-cent rise in post-tax profit in the third quarter, reaching VND33 billion.
During the quarter, TAC saw net revenue drop by 10 per cent to VND1 trillion.
In 2018, the price of oil raw materials declined sharply. Meanwhile, the company had a large quantity of stored products which were produced in the previous time when the raw material prices remained high. This forced TAC to reduce its product prices to match market prices, resulting in losses.
TAC's business results in 2018 did not meet expectations. The company achieved VND4.4 trillion in net revenue and VND136 billion in pre-tax profit, down 2 per cent and 18 per cent year-on-year, respectively.
The company also fulfilled just 86 per cent of the annual revenue plan and 53 per cent of the annual profit plan.