DIC Corp (DIG) profit plummeted, cash flow negative 1,200 billion in the first half of the year

DIC Corp's profit decreased by 95%, only completing 4.7% of the plan after 6 months.

Construction Development Investment Joint Stock Company - DIC Corp (Code: DIG) has just announced its business results for the second quarter of 2024. Revenue recorded VND 821.3 billion, a 5-fold increase over the same period. Gross profit also increased more than 6-fold, reaching VND 203.6 billion.

Financial revenue in the period decreased by nearly half, to 15.5 billion VND. Financial expenses recorded a negative 8.1 billion, equivalent to a decrease of nearly 30.2 billion compared to the same period.

Profit plummeted 95%, DIC Corp (DIC) had negative business cash flow of up to 1,200 billion in just 6 months (Photo TL)

Sales expenses and administrative expenses during the period both increased by VND58.2 billion, equivalent to an increase of about 34.2%. After deducting expenses and taxes, DIC Corp's remaining after-tax profit reached VND125.2 billion, an increase of nearly 13 times over the same period.

Although Q2 business activities had a strong breakthrough, the poor Q1 results have dragged down almost all of DIC Corp's achievements.

The company's accumulated revenue in the first half of 2024 reached VND821.7 billion, 2.3 times higher than the same period last year. However, profit after tax only reached nearly VND4 billion, down 95.4% over the same period last year, due to a loss of nearly VND121.2 billion in the first quarter of 2024.

In 2024, DIC Corp plans to have revenue of VND 2,300 billion, an increase of 72% over the same period. Pre-tax profit is targeted at VND 1,010 billion, 6 times higher than that achieved in 2023.

With this target, DIC Corp has only completed 4.7% of the yearly profit plan even though 6 months have passed. If there is no further breakthrough in the 3rd and 4th quarters, DIC Corp will be at risk of failing its annual business plan.

Capital sources account for 57.6% of debt, long-term debt increased by 1,200 billion

Regarding capital structure, DIC Corp recorded total assets of VND18,444.6 billion, up 9.6% compared to the beginning of the year. Cash and cash equivalents were recorded at VND1,600 billion while deposits increased sharply to VND1,374.8 billion.

Short-term receivables account for 5,845.1 billion, of which a large part comes from compensation advances for projects that DIC Corp is implementing. The most significant of which is the compensation advance for the Long Tan project, which accounts for 2,401 billion VND. The North Vung Tau project is also recording compensation advances of 851.7 billion VND.

In addition, DIC Corp is also recording a receivable of up to VND 397.4 billion from Phuong Nam Development Investment JSC.

Regarding capital structure, DIC Corp recorded total assets of VND 18,444.6 billion. Of which, liabilities accounted for VND 10,555.4 billion, equivalent to about 57.6% of total capital.

Notably, DIC Corp's long-term debt structure is increasing. Long-term debt increased by VND1,204.6 billion in just the first 6 months of the year, equivalent to a 2.3-fold increase. Meanwhile, short-term debt remains at VND2,159 billion, not much fluctuation compared to the beginning of the year.

Business cash flow is negative 1,210.3 billion, increasing debt

Despite reporting a significant profit in the second quarter of 2024, due to heavy losses in the first quarter, DIC Corp's operating cash flow was not very bright. Specifically, the company recorded a negative net cash flow from operating activities of VND 1,210.3 billion, while in the same period it was only negative VND 108.4 billion.

The reason is that the amount of money to be paid to partners providing goods and services during the period amounted to 1,617.8 billion, while the same period only recorded 669.2 billion. Following that was the amount of money spent on other business activities amounting to 318.9 billion VND.

The lack of cash for business operations has forced DIC Corp to increase its borrowing. Cash from borrowing during the period increased by 1,804.7 billion, while DIC Corp only paid back 642.9 billion. As a result, cash flow from financial activities increased by 1,161.8 billion.

Source: https://www.congluan.vn/loi-nhuan-lao-doc-95-dic-corp-dig-am-dong-tien-1200-ty-trong-nua-dau-nam-post305236.html