Hoa Phat Group (HPG) Q3 2023 earnings summary

Executive summary

• Q3 net revenue was VND28.48tn and net profit after tax VND2.00tn, versus a net loss of VND1.79tn in Q3 2022; higher sales volume and lower steel-segment costs drove the profit recovery.

• Total assets were VND173.51tn at 30 September 2023, with equity of VND99.87tn and liabilities of VND73.64tn.

Financial highlights

• Q3 net revenue was VND28.484tn, down from VND34.103tn YoY; cost of sales was VND24.889tn and gross profit VND3.595tn.

• Operating profit was VND2.128tn, versus an operating loss of VND1.352tn YoY; profit before tax was VND2.174tn, versus a loss of VND1.300tn.

• Net profit after tax was VND2.000tn, including VND2.005tn attributable to parent shareholders; prior-year net loss after tax was VND1.786tn.

• Financial income was VND850.6bn and financial expenses VND1.438tn, including VND856.0bn of interest expense.

Segment performance

• Steel production and trading generated Q3 external revenue of VND26.901tn and segment operating profit of VND3.557tn.

• Agriculture reported external revenue of VND1.519tn and segment operating profit of VND165.3bn; real estate revenue was VND64.1bn and operating profit VND49.9bn.

• Management attributed the profit recovery primarily to sales-volume growth and lower steel-segment costs.