Orders are pouring in, some textile and garment companies' profits increased by 624%

In June 2024, Thanh Cong Textile - Investment - Trading Joint Stock Company recorded a profit after tax of 1,123,541 USD, an increase of 624% over the same period.

Textile and garment industry profits improve According to the July investor newsletter of Thanh Cong Textile - Investment - Trading Joint Stock Company (Hose: TCM), in June 2024, this enterprise recorded revenue of 10,294,861 USD, an increase of 10% over the same period in June 2023. Profit after tax in June 2024 was 1,123,541 USD, an increase of 624% over the same period in June 2023. TCM's accumulated revenue in the first 6 months of 2024 was 74,381,667 USD, an increase of 12% over the same period in 2023, reaching 47% of the 2024 plan. Accumulated profit after tax in the first 6 months of 2024 was 5,842,524 USD, an increase of 29% over the same period in 2023, reaching 85% of the 2024 plan. According to TCM, the company's textile and garment revenue in the first 6 months of 2024 comes from 3 main segments, of which garment products account for 74%, fabrics account for 14% and yarn accounts for 8% of total revenue.

Business performance results in June and the first 6 months of 2024 of Thanh Cong Textile Company. Photo: TCM

Regarding the order situation, up to now, TCM said it has received about 90% of the revenue plan for orders in the third quarter of 2024 and about 86% of the revenue plan for orders in the fourth quarter of 2024. TCM's revenue target for 2024 is about VND 3,707 billion (USD 157.7 million), an increase of about 12% compared to the results achieved in 2023. The profit after tax plan for 2024 is VND 161.2 billion (USD 6.68 million), an increase of about 21% compared to the results achieved in 2023. Also a large enterprise in the textile and garment industry, Mr. Pham Minh Duc - General Director of Nam Dinh Garment Joint Stock Company said that the enterprise currently has enough export orders for 2024 and is starting to work on orders for the first and second quarters of 2025. With the order situation improving in the coming months, the company's revenue this year is expected to increase by about 35% compared to 2023. There are still many concerns. Export is one of the important growth drivers of Vietnam. After a period of gloom, many key export items such as textiles, footwear, etc. have gradually improved with double-digit growth. However, there are still many concerns. Ms. Hoang Thuy Oanh - Deputy General Director of Hoa Tho Textile and Garment Joint Stock Corporation - said that in the first months of 2024, the volume of goods has shown many positive signs; orders at Hoa Tho are better than the same period last year. If in 2023, most customers only ordered within 3-4 months, at the beginning of this year there was a longer plan of 5-6 months. However, Ms. Hoang Thuy Oanh said that "this is only a forecast of the ordering plan, and most customers are also relatively cautious. Therefore, units in the corporation must closely monitor the order situation to have good production preparation to meet the delivery schedule". Regarding the order plan for the last 6 months of the year, Ms. Hoang Thuy Oanh said that most of the unit's customers do not have further plans because they need to continue to monitor market developments. "We will closely follow customer and market developments to have order plans for the last months of the year," Ms. Hoang Oanh said. According to her, in addition to market characteristics, price competition is also one of the issues that Hoa Tho is concerned about. Many customers offer lower target prices to accelerate sales or offer promotional programs to stimulate demand. In order to follow the prices that customers offer to the market, all members in the supply chain must try very hard to meet such low unit prices. "In Hoa Tho, some orders are required to reduce prices by 8-14%, which is also a pressure on our garment industry in organizing production to have competitive prices. To be effective, our top priority is to practice savings and improve productivity," said Ms. Hoang Oanh. Along with that, the tension in the Red Sea has also made delivery times longer than before by 10-14 days, customers have asked the unit to deliver earlier to limit the level of impact. Therefore, the unit must deploy good preparation of production conditions as well as maintain flexibility in the order implementation process to meet the requirements of partners. Source: https://laodong.vn/kinh-doanh/don-hang-toi-tap-co-dn-det-may-loi-nhuan-tang-624-1368260.ldo