Lộc Trời (LYG) estimates losses of over $20 million

Lộc Trời (LYG) estimates losses of over $20 million

The difficult financial situation has led the group to propose cancelling the dividend payment plan for 2023, despite shareholders previously approving a dividend distribution of 30 per cent from retained earnings.

Lộc Trời revenue target has also significantly decreased. — Photo nguoiduatin.vn

Lộc Trời Group will present its business plan to the 2025 annual general meeting of shareholders, with a forecast pre-tax loss before interest and depreciation of up to VNĐ524 billion (US$20.96 million), the lowest level in more than a decade.

The meeting will take place on July 14 in Thoại Sơn District, An Giang Province.

Its revenue target has also significantly decreased, now projected at only VNĐ4.2 trillion.

The difficult financial situation has led the group to propose cancelling the dividend payment plan for 2023, despite shareholders previously approving a dividend distribution of 30 per cent from retained earnings.

This is the second time since 2022 that Lộc Trời has had to revise or cancel its dividend payment plan.

The company said that it no longer had sufficient resources to make these payments due to operating cost pressures, low profit margins and difficulties in sourcing rice materials, which hindered exports.

In addition, the group was facing the risk of being unable to meet its obligations, including taxes, insurance, wages, suppliers and bank debts. 

Bizhub