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Habeco's after-tax-profits are the lowest they have been in the last seven years

Released at: 19:00, 03/02/2017

Habeco's after-tax-profits are the lowest they have been in the last seven years

Photo: Duc Anh

The company has had to reduce significant costs and expenses.

by Van Lee

Habeco’s after-tax profits reached VND740 billion ($32.7 million) in 2016 – a significant decrease of 21 per cent compared to 2015.

It has released the consolidated financial report of 2016’s fourth quarter with VND3.7 trillion ($164.5 million) of net revenue – an increase of 21 per cent year-on-year.

Consequently, Habeco has had to reduce financial expenses and selling costs. More specifically, selling expenses have been decreased by approximately VND70 billion ($3.1 million) totaling VND423 billion ($18.7 million). This was done by lowering advertising costs. 

Promotional advertising expenses in the fourth quarter was just VND162 billion ($7.16 million), down VND113 billion ($4.99 million) compared to the same period last year.

In contrast, in the fourth quarter Habeco’s financial income was halved, down to VND 23 billion ($1.01 million), and management costs increased by VND45 billion ($1.98 million) to VND173 billion ($7.64 million).

In the fourth quarter 2016, Habeco recorded another negative profit of VND173 billion ($7.64 million), a notable increase as compared to 2015's fourth quarter in which they saw a negative profit of VND27 billion ($1.18 million).

Habeco’s before-tax profits in the last quarter of 2016 were VND 36.5 billion ($1.61 million). However, after corporate income tax, its losses came out to around VND16 billion ($707,200).

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