HCM CITY (VNS)— Hoa Sen Group, a leading coated-steel sheet producer in Viet Nam, has posted an annual growth of more than 130 per cent in post-tax profits for the fiscal year of 2011-12.
At its annual shareholders' meeting held in HCM City on Wednesday the group's chairman Le Phuoc Vu reported that the group achieved a net profit of nearly VND370 billion (US$17.6 million) in the reviewed year.
The last fiscal year lasted from October 2011 to the end of September 2012.
Vu also announced that the group's sales last fiscal year increased 18.6 per cent compared with the previous year, reaching more than 453,000 tonnes.
Meanwhile, the turnover that his group earned was more than VND10 trillion ($480 million), a year-on-year rise of more than 23 per cent, he said.
"Hoa Sen is one of the few enterprises continuing to grow in sales volume, net sales and profit in 2012 in spite of difficult economic context," he said.
The group's success was attributed to the development of distribution systems in both domestic and foreign markets.
Along with a campaign of developing their trademarks, this helped them to ensure stable sales as steel consumption in the country fell.
In addition, the group decided to increase exports, about 180,000 tonnes that earned $180 million.
This contributed to more than 37 per cent to total net sales. With these results, the group became one of the leading coated-steel sheet exporters in Southeast Asia.
According to Vu, the strong development of exports provided the group with stable foreign-cash sources to import raw materials and reduce the risks caused by the unpredictable changes in the exchange rate.
In addition, the investment on advanced technologies and human resources played an important role in their success by increasing yield and cutting costs.
For the fiscal 2012-13 year, the group will continue to expand exports, with a target of increasing export turnover to 40-50 per cent of the total sales. In the domestic market, it plans to open an additional 15-20 retail stores nationwide.
The group targets a revenue of VND11 trillion ($524 million) and net profit of VND400 billion ($19 million) during the period. — VNS