Cement and steel companies continue to sink into losses.

While many businesses continue to report large profits, some cement and steel companies remain mired in losses. For example, VICEM Hai Van Cement Company (stock code HVX) reported revenue of nearly 110 billion VND in the third quarter of 2024, a 14% decrease compared to the same period last year. The company continued to incur a net loss of over 8 billion VND (compared to a loss of nearly 16 billion VND in the same period last year). This marks HVX's sixth consecutive quarter of losses. For the first nine months of the year, HVX generated net revenue of over 261 billion VND, a 38% decrease, and incurred a loss of nearly 38 billion VND. The total accumulated losses up to the end of September reached 90.3 billion VND.

Hai Van Cement Company stated that in the third quarter, it did not produce or sell clinker due to a lack of market demand, high clinker production costs, and logistical disadvantages. At the same time, fixed costs of the Van Ninh cement plant, amounting to nearly 19 billion VND (due to the cessation of clinker production), were included in the cost of goods sold, resulting in a decrease in profits.

Several steel and cement companies continue to report losses.

Similarly, VICEM Hoang Mai Cement Joint Stock Company (stock code HOM) announced net revenue of over VND 356 billion in Q3 2024, a 23% decrease compared to the same period last year. Due to a deeper reduction in cost of goods sold, after deductions, gross profit reached nearly VND 52 billion, a 9% increase. However, the increase in gross profit was not enough to offset expenses, resulting in a loss of over VND 11 billion (compared to a loss of nearly VND 27 billion in the same period last year). For the first nine months of the year, the company achieved net revenue of nearly VND 1,204 billion, a 5% decrease compared to the same period last year, and incurred a net loss of over VND 51 billion. The total accumulated loss up to the end of Q3 2024 is over VND 76 billion.

The company stated that the cement industry is still facing difficulties due to high supply, while the domestic and export cement markets continue to face fierce price competition, product inventory pressure, and excess production capacity. At the same time, the increasing trend of shifting demand from bagged cement to bulk cement is reducing the company's business efficiency due to the brand value associated with bagged cement.

Previously, Vietnam Cement Corporation (VICEM) reported a loss of 863 billion VND in the first six months of 2024...

Not only cement companies, but also some steel companies continue to suffer losses. Specifically, Thu Duc Steel Joint Stock Company (stock code TDS) achieved net revenue of over 385 billion VND in the last quarter, an 18% increase compared to the same period in 2023. However, the sharp increase in the cost of goods sold reduced the company's gross profit margin. After deducting expenses and taxes, TDS incurred a net loss of 6.5 billion VND. In total, after the first nine months of 2024, TDS recorded a strong increase in revenue to 1,073 billion VND but a net loss of 9.6 billion VND.

Pomina Steel Joint Stock Company (POM) achieved revenue of nearly VND 503.5 billion in the third quarter of 2024, a decrease of over 80% compared to the same period last year. The company continued to incur a pre-tax loss of over VND 110 billion (a significant reduction compared to the loss of over VND 715 billion in the third quarter of 2024). For the first nine months of 2024, the company achieved revenue of nearly VND 2,948 billion, a decrease of 74% compared to the same period last year, and a loss of over VND 647 billion (compared to a loss of VND 707.5 billion in the same period last year). In total, as of the end of September, the company had accumulated losses exceeding VND 868.4 billion.

According to the Ministry of Construction , the production and business situation of the aforementioned enterprises remains difficult due to the sluggish real estate and construction materials markets. Meanwhile, the prices of materials and fuel are fluctuating upwards, and foreign exchange rates are rising. Some units are operating at a reduced capacity, incurring losses, and failing to meet their assigned targets.

Source: https://thanhnien.vn/cong-ty-xi-mang-sat-thep-tiep-tuc-chim-trong-thua-lo-185241024111759486.htm