After-tax profits of Hoa Phat Group saw a significant increase in Q3/2023
Steel NewsDate: 06-11-2023 by: Nhu Quynh
Hoa Phat Group has just announced its business results for the third quarter and the first nine months of 2023. Accordingly, in the first nine months of 2023, Hoa Phat recorded a revenue of 85,430 billion VND and an after-tax profit of 3,830 billion VND. In the third quarter alone, Hoa Phat Group achieved a revenue of 28,766 billion VND with an after-tax profit of 2,000 billion VND.
According to Hoa Phat Group, the cost of raw materials in the steel industry remained stable in the third quarter, while sales volumes showed gradual improvement quarter by quarter. Specifically, steel product sales in the third quarter increased by 12% compared to the second quarter and by 24% compared to the first quarter of the year. Additionally, maintaining low inventory levels contributed positively to the improved profit margin in the last quarter.
In the first nine months of 2023, Hoa Phat Group produced 4.8 million tons of crude steel, a decrease of 21% compared to the same period in 2022. The sales volume of various steel products (excluding steel pipes and coated steel) reached 4.6 million tons, marking a 19% decrease. During this period, Hoa Phat produced 2.57 million tons of construction steel and high-quality steel, a 25% reduction compared to the first nine months of 2022. The export market contributed nearly 490,000 tons of this production. The production of Hot Rolled Coils (HRC) reached nearly 2 million tons, showing a 3% decrease compared to the same period in 2022. Additionally, Hoa Phat Group supplied the market with 488,000 tons of steel pipes and 240,000 tons of various coated steel, representing corresponding decreases of 14% and 3% compared to the first nine months of 2022.
Since the beginning of August, Hoa Phat Group has officially been supplying container shell products to the market. Hoa Phat Containers have been actively introducing their products at major industry exhibitions both domestically and internationally, attracting the interest and orders from numerous logistics companies and international container leasing businesses. Also in August, Hoa Phat launched the first terminal of the integrated container port in Dung Quat, Quang Ngai, to serve the cargo handling needs of enterprises in the Dung Quat Economic Zone and adjacent areas.
Hoa Phat Group is also continuing its investment in expanding the existing industrial zones in Hung Yen and Ha Nam, creating additional clean land and technical infrastructure to meet the investment and business needs of domestic and international enterprises. Additionally, Hoa Phat is closely monitoring the progress of major projects, especially the Dung Quat 2 steel and iron production complex.
As of the end of the third quarter, Hoa Phat Group continues to lead the market share in construction steel and steel pipes in Vietnam with shares of 33.3% and 27.3%, respectively. Hoa Phat Steel is among the top 5 largest steel producers in Vietnam.