Recently, Thien Long Group Joint Stock Company (HoSE: TLG) has announced its business results for the first 7 months of the year. Accordingly, the company's net revenue reached 2.218 billion VND, an increase of 1% over the same period. Of which, revenue from exports reached 538 billion VND.
In the first 7 months of 2023, sales and corporate management expenses increased by 16% to VND 632 billion, as the group invested heavily in human resources from mid-2022 to prepare for future development. In addition, earlier this year, the unit also increased sales and brand development costs to get ready for the peak consumption season.
As a result, Thien Long's profit after tax decreased by 22% over the same period to 277 billion dong. Thus, in general, for 7 months, this business makes a profit of more than 1 billion dong per day.
In July alone, TLG's revenue reached VND 7 billion and profit after tax was VND 230 billion. Compared to the achieved results, the company has completed 9% of the revenue target and 55% of the year profit target.
Explaining the reason for the decline in business results, Thien Long said that Vietnam's economy in 2023 is influenced by complex and unpredictable factors, leading to the retail industry facing many difficulties.
Therefore, the need to invest and reserve stationery products at points of sale (POS) has not increased much compared to last year. Export business, especially OEMs (units specializing in carrying out production work according to partners' orders), is also facing many challenges from the gloomy context of the international market.
Previously at the 2023 Annual General Meeting of Shareholders, General Director Tran Phuong Nga said that Thien Long is preparing a solid foundation to expand to a larger scale. In the revenue structure of 10.000 billion VND by 2027, the selling price increase rate is from 50 - 70% according to the 5-year roadmap.
The revenue of 10.000 billion VND will come from 3 pillars including the export segment accounting for 1/4, the domestic segment increasing in value rather than focusing all on output, and finally new segments.
Currently, consumer demand over time will increase with people's income, young consumers will be willing to pay more for a better experience. Therefore, the company pursues the goal of quality and experience value rather than output.
On the stock market, at the end of the trading session on September 6, TLG shares lost 9% at closing, only 0,7 VND/share. Compared to the bottom in March 56.900, this stock's market price has increased by 3%.
