Companies report first, record-high losses in Q3
Companies report first, record-high losses in Q3
Many companies reported their first or highest quarterly losses in the third quarter as the fourth Covid-19 wave caused sales to plunge and costs to surge.
Jewelry seen at a shop of Phu Nhuan Jewelry in Ho Chi Minh City. Photo courtesy of Phu Nhuan Jewelry |
Thanh Cong Textile Garment Investment Trading JSC posted its first loss of VND3 billion ($131,930). The company said social distancing measures imposed since July 15 have lowered the company’s productivity, while increased costs from the stay-at-work model contributed to the loss.
Its revenue plunged 20 percent year-on-year to VND783 billion.
Tire giant Casumina also posted its first loss at VND28 billion due to rising material and stay-at-work expenses. Efforts to lower costs of sales and management were not enough to prevent the loss.
Hang Xanh Motors Service JSC, the first distributor of Mercedes-Benz cars in Vietnam, posted a loss of VND33 billion, a record high since it was listed on the Ho Chi Minh Stock Exchange in 2006.
The company said its business was "frozen" due to the fourth Covid-19 wave, with its two branches in HCMC closed throughout the quarter.
Closure of shops was also the reason why PNJ of Phu Nhuan Jewelry posted a loss of VND158 billion in the quarter. It closed 80 percent of its outlets nationwide due to social distancing in the period.
Other companies also saw business figures plunge, although it was not their first loss.
Taxi firm Vinasun saw revenues drop 10 times in the third quarter while it lost VND91 billion, its seventh losing quarter in a row.
Cement producer Ha Tien 1 posted its first loss after eight years at nearly VND20 billion.
Binh Minh Plastics went through one of its worst years in a 44-year history with three quarterly losses in a row this year. It lost VND26 billion in the third quarter.
