Home / Knowledge / News / Textiles / Vinatex projects 50% drop in profit before tax this year

Vinatex projects 50% drop in profit before tax this year

26
Jun '20
Pic: Shutterstock
Pic: Shutterstock
The Vietnam National Textile and Garment Group (Vinatex) recently forecast that its consolidated profit before tax this year will fall by half to VND 382 billion ($16.5 million) year on year due to the negative impact of the COVID-19 pandemic. This is the lowest consolidated profit before tax over the past four years, according to the company.

Its consolidated revenue is estimated at VND 14.64 trillion, down by 27 per cent compared to last year’s figures, according to reports presented at its annual general meeting this year.

In the report, Vinatex has targeted this year’s revenue of the parent company at about VND 1.33 trillion, down by 5 per cent and profit before tax at 130 billion, down by 56 per cent compared to 2019 because of difficulties in production and business during and after the pandemic.

In the 2020-25 period, the group must adjust its development strategy because it faced competition in technology but not in price 10 years ago, Vinatex chairman Tran Quang Nghi said.

In its development plan for this period, Vinatex would promote mergers and acquisitions, and restructure its businesses because the group's current business and production model will become inefficient, according to a Vietnamese media report.

Besides continuing divestment, it would also buy shares of other companies as well as invest in newly-established enterprises necessary for the development strategy.

Vinatex's consolidated revenue in 2019 reached VND 20.14 trillion, similar to 2018 figures, fulfilling 91 per cent of the 2019 plan. Its profit before tax was VND 765.5 billion, or 91.2 per cent of the yearly plan and up 0.5 per cent over the same period last year.

According to the country’s General Department of Customs, in the first five months of this year, the domestic textile and garment industry saw a year on year reduction of 13.6 per cent in total export value to $10.56 billion due to the pandemic. However, this surged in May by 16 per cent to $1.87 billion over the previous month.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 5th May 2021

India-UK launch Enhanced Trade Partnership

To unleash the trade potential between the 5th and 6th largest...

Pic: Shutterstock

Textiles | On 5th May 2021

EURATEX welcomes revamped EU Industry Strategy

EURATEX, the voice of the European textile and apparel industry, has...

Pic: Shutterstock

Textiles | On 5th May 2021

US economy could see fastest growth in 3 decades: NRF

With more businesses reopening and bringing employees back to work,...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Textile Industry, Head honchos

Textile Industry
Head honchos

Indian apparel industry looks poised for slow death

Raiyan Islam,

Raiyan Islam

Founded in 1981 by Sayeeful Islam, Concorde Garments Group is a market...

Emmi Berlin,

Emmi Berlin

With the support of the first investors - Finland's Technical Research...

Harleen Kaur,

Harleen Kaur

Established in 2017 and headquartered New York, the label Harleen Kaur...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search