Many businesses ask to reduce profit targets

Some businesses have been asking for shareholders' opinions to reduce their 2023 business plans when the operating situation is difficult. For example, Petrolimex Petrochemical Corporation - Joint Stock Company (stock code PLC) has just announced the content of asking shareholders' opinions in writing to approve the adjustment of the 2023 business plan. Accordingly, this year's sales revenue plan is nearly VND 8,396 billion, down 5.7% compared to the original target and after-tax profit is expected to decrease by 30% compared to the original, down to VND 112 billion.

PLC said that this year, under the impact of factors related to the economic situation, interest rate and exchange rate policies, the company's production and business activities have been directly and significantly affected. Since August, the exchange rate has tended to fluctuate upward, thus affecting and increasing PLC's financial costs. On the other hand, input costs have always been high while the average selling price of goods during the year has tended to decrease.

Some businesses ask for a sharp reduction in profit targets for 2023

Similarly, Vietnam Textile and Garment Group (Vinatex, stock code VGT) is also seeking shareholders' opinions on adjusting its 2023 production and business plan. Specifically, Vinatex plans to lower its 2023 revenue target from VND 17,500 billion according to the old plan to VND 16,500 billion, down 6%. At the same time, it will adjust its pre-tax profit target from VND 610 billion according to the old plan to VND 370 billion, down 39%. After 9 months of 2023, Vinatex achieved net revenue of nearly VND 12,187 billion and pre-tax profit of more than VND 288 billion, down 14% and 76% respectively compared to the same period.

Another "big guy" is Vietnam Steel Corporation - Joint Stock Company (stock code TVN) also asked shareholders to sharply reduce its 2023 business plan. In particular, it reduced the parent company's pre-tax profit target from 52 billion VND to 1 billion VND. Correspondingly, the profit target decreased by more than 98% while other targets such as parent company revenue and consolidated pre-tax profit remained the same. In the third quarter of 2023 report, TNV achieved net revenue of 7,947 billion VND, down 7% compared to the same period in 2022 and reported a loss after tax of 172 billion VND, bringing the pre-tax loss after 9 months to more than 431 billion VND.

Danameco Medical Joint Stock Corporation (stock code DNM) even reduced its revenue target by 23% compared to the old plan, from 350 billion VND to 269 billion VND. The company forecasts a pre-tax loss of nearly 42 billion VND, while the previous plan was for a profit of 17.5 billion VND. The company's Board of Directors said it will report on adjusting the 2023 business plan and developing a 2024 business plan at the nearest Shareholders' Meeting.

Or Sao Ta Food Joint Stock Company (stock code FMC) has decided to reduce the total revenue target by 25% to 4,870 billion VND compared to the old plan (5,900 billion VND). Correspondingly, pre-tax profit decreased by 25% compared to the initial target of 400 billion VND to 300 billion VND. Accumulated in the first 9 months of 2023, the company achieved revenue of 3,835 billion VND and after-tax profit of 213 billion VND, down 11 - 15% compared to the same period last year...

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