Loc Troi Group Joint Stock Company (stock code: LTG) will soon hold its 2025 annual general meeting of shareholders. Loc Troi is known as a "big" enterprise in the rice industry, supplying pesticides, trading seeds...
This year, the company's leaders set a business plan with net revenue of VND4,200 billion but accounting loss before tax, interest and depreciation of VND524 billion.
In the report on the situation in 2024, Loc Troi's Board of Directors assessed that this was a particularly difficult year for rice exporting enterprises, although export value reached a peak, business profits were very low, even suffering losses.
The group said it was under pressure from operating costs, low profit margins and financial difficulties, making it difficult for the food industry to develop raw material areas with farmers and limit exports.
According to the company, the agricultural materials industry is facing great competition in terms of products and markets, while the agricultural cultivation area is increasingly narrowing. In addition, the consequences of sales activities in previous years compared to the actual distribution capacity of the dealer system contribute to large inventories, decreased value, and additional financial burden.
Regarding personnel, Loc Troi has had major changes in its management and administration. The General Director and Deputy General Director have changed, and many other key management positions have also changed.
Financially, businesses are facing limited ability to pay their payables including banks, suppliers, employees and State financial obligations.
As of now, Loc Troi has not yet announced its audited semi-annual financial statements (SFS) for 2024 and its audited 2024 SFS. According to the group, the auditor, Ernst & Young Vietnam Co., Ltd. (EY Vietnam), is analyzing and performing additional audit procedures to draw conclusions on the company's ability to continue operating as a going concern. The company's Board of Directors plans to continue implementing solutions to overcome difficulties this year.
In another document, the company said that its production and business situation in the past 6 months has encountered many difficulties, and it no longer has enough resources to pay the 2023 dividend at a rate of 30%.
On the other hand, the company still owes the state, including taxes, social insurance, and debts to suppliers, partners, and bank loans. Therefore, the Board of Directors submitted to shareholders for approval to cancel this dividend payment plan.
According to the latest report, in 2023, Loc Troi achieved a record revenue of VND 16,088 billion, an increase of 38% compared to the previous year, mainly from the food sector with revenue of VND 11,000 billion, accounting for 70% of the structure. However, after-tax profit only reached nearly VND 16.5 billion, a decrease of 96% compared to the previous year.
Source: https://dantri.com.vn/kinh-doanh/ong-lon-nganh-gao-loc-troi-du-kien-lo-524-ty-dong-nam-nay-20250616173526670.htm
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