Vocarimex (VOC) gross loss for 4 consecutive quarters, profit from selling capital of Calofic

Vocarimex (VOC) with gross loss lasting 4 consecutive quarters

Vocarimex (VOC) was established in 1975 on the basis of 4 vegetable oil factories in the South. By 1992, the Vocarimex brand was officially established and converted into a joint stock company in 2014 with a charter capital of 1,218 billion VND. Currently, Vocarimex is a subsidiary of Kido Group with Kido's ownership ratio here being 87.3%.

Over the past year, Vocarimex has continuously recorded fluctuations in revenue. Specifically, the company's revenue reached 452 billion VND in the third quarter of 2022, increasing to 599.7 billion in the fourth quarter of 2022. In the first quarter of 2023, the company's revenue dropped sharply to only 195 billion VND and only temporarily recovered to 474.7 billion in the second quarter of 2023.

Kido Vocrimex subsidiary, Vocimex, contributes 4 consecutive quarters, profit only from selling capital, Calofic image 1 — Vocarimex (VOC) has had a gross loss for 4 consecutive quarters.

It is worth mentioning that in these 4 consecutive quarters, Vocarimex has recorded a gross loss, meaning the company is bringing in lower revenue than the cost of goods sold, not to mention other sales and management costs incurred during the period.

At its peak in the fourth quarter of 2022, Vocarimex's gross loss reached VND 148.4 billion. Or in the most recent second quarter of 2023, Vocarimex's gross loss was VND 109.1 billion.

Also in the second quarter of 2023, financial revenue decreased to only VND 29.3 billion due to no longer recording profits from selling shares of Calofic associates as in the previous quarter. Sales expenses and business management expenses were recorded at VND 6 billion and VND 6.8 billion, respectively.

Subtracting these expenses, Vocarimex's net loss from business operations was 93.5 billion VND, and its loss after tax was 75.1 billion VND.

Business bright spot comes from selling Calofic capital, trillions in profit is still waiting for distribution

The business situation below cost price has caused Vocarimex to record gross losses for 4 consecutive quarters. The only bright spot in the business activities of this unit comes from the sale of shares in Calofic company.

Specifically, in the first quarter of 2023, Vocarimex recorded net revenue of only 195 billion VND, gross loss of 8.6 billion VND. However, the company's after-tax profit reached 1,261.2 billion VND.

According to Vocarimex's explanation, the sudden increase in profit came from financial income from the sale of shares in the associated company Calofic. This amount was recorded in other revenue amounting to VND 1,581.1 billion.

Kido Vocrimex subsidiary, Vocimex, 4 consecutive quarters, profit from capital sale, image 2 — The bright spot in Vocarimex's (VOC) business results comes from the sale of capital in Calofic (Photo TL)

In the first quarter of 2023, after recording the above extraordinary income, Vocarimex's equity also increased dramatically despite the unfavorable business situation. In the first quarter of 2023 alone, VOC's equity increased from VND 1,331.7 billion to VND 2,593 billion.

Notably, the increase mainly came from undistributed profit after tax in the period, amounting to VND 1,261.2 billion.

On February 27, 2023, Vocarimex also unexpectedly proposed a "special" dividend payment plan of 100% despite the poor business situation. With this dividend payment plan, Kido Group, which holds 87.3% of shares at VOC, is expected to collect more than VND 1,000 billion in dividends.

It is worth mentioning that immediately after that, Kido Group also announced a plan to pay a special dividend of 50%, the amount of dividend paid also reached more than 1,000 billion VND.

On March 8, 2023, the Vietnam Securities Depository Center in Ho Chi Minh City announced that Vocarimex had canceled the plan to pay 100% dividend. The undistributed profit after tax of more than VND 1,261.2 billion remained on VOC's financial statements until the end of the second quarter of 2023. The plan to pay a special dividend of 50% of Kido Group was also postponed afterwards.

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