Ho Chi Minh City Book Publishing Joint Stock Company (Fahasa, ticker FHS) recently announced its consolidated financial report for the third quarter, showing less than positive results amidst a weakening overall economic purchasing power.
However, it is noteworthy that financial income doubled compared to the same period last year, reaching 7 billion VND, entirely from interest on bank deposits and loans. This was thanks to the company continuously increasing its bank deposits, reaching a record high of 460 billion VND at the end of the last period.
As a result, Fahasa recorded pre-tax profit of only nearly 19 billion VND, 20% lower than the same period last year. Net profit also decreased correspondingly to 15 billion VND.
In the past quarter, the largest bookstore chain in Southern Vietnam recorded flat sales revenue compared to the same period last year at VND 1,430 billion. Lower cost of goods sold and fewer returned items helped boost gross profit slightly to VND 344 billion, corresponding to a gross profit margin of nearly 24%.
Gross profit margins improved, but operating expenses increased sharply, consuming almost all of the profits. Selling expenses accounted for a large proportion, approximately VND 298 billion (an 11% increase compared to Q3/2022), followed by administrative expenses of nearly VND 35 billion.
However, thanks to the good results at the beginning of the year, the bookstore owner recorded a slight increase in cumulative sales revenue for the first nine months, reaching 3.261 billion VND. Pre-tax profit increased by nearly 20%, reaching almost 47 billion VND (this figure included over 17 billion VND in interest income from bank deposits).
According to the plan set for 2023, Fahasa shareholders agreed on a revenue target of VND 4,000 billion and a pre-tax profit target of VND 50 billion. Thus, the company has achieved 82% of its revenue target and 94% of its profit target.
Total assets have seen rapid expansion in recent quarters, reaching nearly VND 1,745 billion, 35% higher than at the beginning of the year. This rapid increase in assets is mainly due to an increase in bank deposits, accounts receivable from customers, and inventory.
While many businesses are short of cash, Fahasa remains healthy with a total cash and cash equivalents balance, including time deposits, of approximately VND 514 billion, accounting for 30% of its total assets at the end of the last quarter.
The bookstore company's liabilities amounted to over 1.56 trillion VND, primarily consisting of short-term payables to suppliers totaling 1.335 trillion VND, a 30% increase compared to the beginning of the year. Fahasa continues to maintain a cautious business policy by having no financial debt since the company began publicly disclosing its financial statements.
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