How have plastic businesses performed over the past two quarters?

DNHN - In the context of a challenging economy, the business environment of companies in the plastics industry has undergone remarkable changes.

Let's take a look at some significant changes in the financial performance of some industry leaders.

Dong A Plastics Group (DAG): Unsurprisingly, DAG recorded the greatest net loss among the statistical organizations. During the second quarter of 2023, DAG's net revenue reached 400 billion VND, a decrease of 31.83% compared to the same period in the previous year. With a negative after-tax profit of VND 102.7 billion, the loss continued.

Contributing significantly to DAG's loss are expensive raw materials, increased import and transportation costs, and damage from goods storage, resulting in an abundance of scrap. The difficulty in debt collection also contributes to the provisioning of receivables, resulting in a significant increase in the business's administrative costs.

Green An Phat Plastic JSC (AAA): AAA is not immune to the effects of the current economic climate. The company's revenue decreased by 39% in the second quarter of 2023, to just over VND 2,791 billion. Additionally, the gross profit decreased to 35.6%, with an after-tax profit of over 221 billion dong.

Despite the decline in revenue, expenses remained high, resulting in business losses. General industry difficulties, such as the economic downturn, have had a significant impact on AAA's business results.

Tien Phong Plastic Joint Stock Company (NTP): The second quarter was also difficult for Tien Phong Plastic. The revenue fell by 25.6% to reach 1,127 billion VND. Gross profit decreased by 32% to 285 billion Vietnamese dong.

Both domestic and international sales of NTP's products have been severely impacted by the deteriorating economic climate and the subsequent recession.

Binh Minh Plastic Joint Stock Company (BMP): While many businesses were experiencing a decline, BMP saw an improvement. Despite a 14% decline in net sales to VND1,336 billion, the company's net income doubled year-over-year to VND286 billion.

The spread between input and selling prices, in conjunction with the strong growth in financial revenue, has significantly contributed to BMP's positive results.

Da Nang Plastic Joint Stock Company (DPC): While there are companies experiencing growth, DPC's business results have been subpar. While revenue nearly doubled from the same period in 2022 to reach VND 9.7 billion in the second quarter of 2023, gross profit decreased to just over VND 2.8 billion, a decrease of 17.6%.

DPC's inability to execute its business plan as anticipated has resulted from the company's loss of profits due to the challenging market conditions.

In general, the plastics industry is confronted with diverse changes in enterprise business results. Some businesses overcome obstacles to maintain positive development even though the current economic climate and related factors pose significant obstacles.

P.V (t/h)