In only six months, Quang Ngai Road exceeded the profit target for 2023.

DNHN - Quang Ngai Sugar recorded a net profit of nearly VND 712 billion in the second quarter, up 95% from the same period last year. Notably, the company surpassed its annual profit goal in only six months.

When it reported its business results for the second quarter of 2023, Quang Ngai Sugar Joint Stock Company (QNS) made a remarkable achievement. Thanks to efforts to control costs and stabilize sugar product prices, QNS was able to achieve a net profit of nearly VND 712 billion, an increase of 95% compared to the same period in the previous year. Notably, the company surpassed its annual profit goal in only six months.

In the second quarter, QNS reported net revenue of more than VND3,152 billion, an increase of 43% compared to the same period last year. Despite a 40% increase in COGS to more than 2,155 billion dong, QNS reported a record gross profit of nearly 997 billion dong, an increase of 52%.

Financial activities also contributed positively to QNS's results, as financial income increased by more than 92 billion dong during the same period. However, financial expenses increased to nearly 51 billion dong, nearly doubling from the same period last year, primarily due to nearly 50 billion dong in interest expenses. In addition, administrative costs increased by 20% to 81 billion dong. Meanwhile, selling expenses exceeded 169 billion dongs, a 2% decrease.

With this accomplishment, QNS recorded a net profit of nearly 712 billion dongs, an increase of 95% compared to the previous period. This is the most profitable quarter since QNS shares began trading on UPCoM in 2016 until now.

It is known that the global and domestic economic situation caused by the COVID-19 pandemic has affected QNS. Even though purchasing power has not fully recovered, the consumption volume of products such as milk, mineral water, beer, and confections has decreased marginally. However, thanks to cost control and efficient management, the profits of these products remained roughly the same during the same period.

Moreover, despite the economy's continued difficulties, QNS maintained stability and recorded high growth rates for several key products. With a 133% increase in volume and a 150% increase in revenue, sugar products were a major focus. The consumption volume of electricity increased by 35% and the revenue increased by 39%, while the sales volume and revenue of Nha products increased by 13% and 14%, respectively, to achieve impressive growth rates.

To achieve this level of success, QNS has prioritized investments in developing raw material areas, thereby increasing sugarcane yield and quality. Simultaneously, the sugar production line has been put into stable operation, saving money and lowering product prices.

Additionally, the State's trade remedies for sugar products and the effective control of smuggled sugar contributed positively to QNS's production and business performance, resulting in a year-over-year increase in net profit. same period.

QNS continues to maintain stability and sustainable growth in the market. In the first half of the year, the Company's net revenue amounted to VND 5,282 billion, an increase of 32%, with sugar products and soy milk products accounting for the majority, totaling more than VND 2,220 billion and more than VND 1,978 billion, or 42% and 37% of the total, respectively. The net profit reached over 1,028 billion dongs, an increase of 90 percent over the same period.

PV (t/h)