Pomina Steel (POM) lost another 110 billion in the third quarter, cash decreased by 93%

Pomina Steel lost another 110.4 billion in the third quarter

Pomina Steel Corporation (Code: POM) has just announced its Q3 financial report with revenue reaching VND503.5 billion, down 83.1% over the same period. Cost of goods sold accounted for VND508.7 billion, showing that the business situation below cost of goods sold is still continuing. POM's gross profit result was recorded at a negative VND5.2 billion,

Financial revenue during the period reached VND11.3 billion, down 32.3%. Financial expenses, mostly interest expenses, decreased by 50.5% to VND58.9 billion. Sales expenses accounted for VND1.2 billion while administrative expenses were recorded at negative VND6.9 billion. The company's net loss from business activities was VND47.1 billion.

Pomina Steel continued to lose another 110.4 billion VND in the third quarter (Photo TL)

After deducting all expenses and taxes, Pomina Steel still had a loss after tax of 110.4 billion VND. This loss was much lower than the same period last year when it lost 715.6 billion VND.

Pomina Steel's accumulated revenue in the first 9 months of the year reached VND2,948 billion, down 73.5% over the same period. Profit after tax recorded a negative VND647.4 billion, slightly lower than the loss of VND707.5 billion in the first 9 months of 2022.

Compared with the 2023 target of VND 14,000 billion in revenue and VND 300 billion in after-tax profit, POM has only completed 21% of the revenue plan and has almost certainly broken the annual profit plan.

Long-term debt increased by 55%, total debt increased in capital structure

At the end of the third quarter of 2023, POM recorded total assets of VND 10,688.9 billion, down 3.1% year-on-year. The company's cash balance dropped sharply from VND 206.3 billion at the beginning of the period to only VND 14.3 billion, equivalent to a decrease of 93%. The company also did not record any notable deposits at the bank.

Most of the company's assets exist in the form of long-term assets, accounting for 7,343.8 billion VND. Of which, the cost of unfinished basic construction accounts for 5,796.9 billion VND.

Regarding capital structure, POM recorded payables of VND 8,690.4 billion, equivalent to 81.3% of total capital. The company is borrowing short-term debt of VND 5,205.1 billion along with long-term debt of VND 1,146 billion.

Long-term debt has tended to increase sharply, increasing by 55% compared to the beginning of the period, causing total short-term and long-term debt to increase by 3.1% compared to the beginning of the year.

Business cash flow negative 253.2 billion VND

In the Q3/2023 cash flow statement, POM recorded a negative net cash flow from operating activities of VND 253.2 billion while the previous period was still positive at VND 46.6 billion.

The company did not have to pay income tax during the period, but the interest payment amounted to 168.8 billion VND. The payment to employees, on the contrary, decreased from 256.2 billion to only 86.9 billion VND.

Net cash flow from investing activities only accounted for VND 5.2 billion, the same period recorded VND 10.7 billion, showing that the company has not had any outstanding investment expansion for a long time.

In addition, net cash flow from financial activities was positive at VND56 billion while in the same period it was negative at VND244.3 billion, showing that POM is having to increase borrowing to offset negative cash flow from business activities.

Source: https://www.congluan.vn/thep-pomina-pom-lo-them-110-ty-trong-quy-3-tien-mat-sut-giam-93-post270987.html