A steel company's profit more than quadrupled in the third quarter of 2024

Pre-tax profit in the third quarter of 2024 of Thong Nhat Steel Sheet reached nearly 14.4 billion VND, 4.6 times higher than the same period thanks to the company finding customers and having a source of goods at reasonable prices.

Thong Nhat Sheet Steel Joint Stock Company (stock code TNS) has just announced its financial report for the third quarter of 2024 with a series of positive indicators compared to the same period. Specifically, net revenue is approximately 593 and gross profit is more than 20.3 billion VND, up 43.6% and 2.7 times over the same period, respectively. Gross profit margin for this period reached 3.4%.

In the third quarter, Thong Nhat Steel Sheet 's expenses all increased slightly compared to the same period last year. Specifically, financial expenses increased from VND1.1 billion to VND1.5 billion, selling expenses from VND939 million to VND1.1 billion and business management expenses from VND2.4 billion to VND2.9 billion.

After deducting all expenses, the company reported pre-tax profit of VND14.4 billion and after-tax profit of VND10.9 billion, respectively 4.6 times and nearly 3.5 times higher than the same period last year.

In the first 9 months of 2024, Thong Nhat Sheet Steel recorded revenue of VND 2,317 billion, 3.5 times higher than the same period last year. The company's gross profit was more than VND 56.2 billion, while in the same period it was only more than VND 15.1 billion. The gross profit margin reached 2.4%, equivalent to the level achieved in the same period in 2023. The company reported pre-tax profit of VND 33.2 billion and after-tax profit of VND 25.8 billion after deducting expenses, while in the same period last year it was only VND 121 million.

In a written explanation sent to the Hanoi Stock Exchange, the company said that the cold-rolled steel market in 2024 will still face unpredictable developments from geopolitical tensions and slow recovery. However, Thanks to finding customers and sources of goods at reasonable prices, production output increased by 54% and consumption increased by 48% compared to the same period last year. Therefore, profit after tax in the third quarter of this year increased strongly compared to the same period in 2023.

This year, Thong Nhat Steel Sheet plans to achieve a total production and consumption output of 140,000 tons, of which main products reach 50,000 tons and processed products reach 90,000 tons. The company expects pre-tax profit to reach 1 billion VND. Thus, in the first 3 quarters of the year, TNS has far exceeded the previously set profit plan.

According to the management, this year, the company continues to closely monitor each market fluctuation to have flexible production and business plans, together with customers to determine output product needs to diversify raw material sources to suit each product.

As of the end of September, the company had total assets of 383 billion VND, a slight decrease compared to the beginning of the period. The company's liabilities decreased from 368 billion VND at the beginning of the year to 326 billion VND. Short-term debt accounted for an overwhelming proportion of 286 billion VND.

The company currently has equity of 56.7 billion VND. Accumulated loss reached more than 144 billion VND.

On the stock exchange, TNS shares are hovering at a more than 2-year peak (VND6,400) despite only being traded on Fridays. This code has been placed on restricted trading since March 16, 2023, as the auditing organization refused to comment on the 2022 financial report.

Source: https://baodautu.vn/mot-cong-ty-thep-lai-gap-hon-4-lan-trong-quy-iii2024-d227565.html