After witnessing a decline in the first quarter of the year, Duc Giang Chemicals Group expects the poor business performance to continue in the second quarter.

The company predicts a consolidated total revenue of over VNĐ2.4 trillion and a profit after tax of VNĐ700 billion in the second quarter. It will also allocate VNĐ40 billion for essential maintenance and repairs at the Duc Giang ethanol plant.

In the second quarter of 2023, Duc Giang recorded a net profit after tax of VNĐ881.81 billion, meaning that its profit plan for this year's second quarter is estimated to decrease by 20.6 per cent from last year.

In terms of revenue distribution, it sees significant contributions from gold phosphate with projected earnings of VNĐ1 trillion, accounting for 42.3 per cent of the total revenue.

It anticipates VNĐ315 billion in revenue from 50 per cent wet process phosphoric acid (WPA), making up 13.1 per cent of the total revenue, while revenue from 85 per cent acid phosphoric is estimated at VNĐ237 billion, representing 9.9 per cent of the total revenue.

The company also plans to increase the charter capital of its wholly-owned subsidiary, Dak Nong Duc Giang Chemical Limited Company, from VNĐ300 billion to VNĐ600 billion in this quarter. The additional capital will be contributed through assets and/or cash.

In the first quarter, Duc Giang Chemical Group reported a 4 per cent decrease in revenue to over VNĐ2.3 trillion. The profit after tax was VNĐ703.91 billion, down 14.4 per cent year-on-year. The gross profit margin narrowed from 35.9 per cent to 32.1 per cent.

The falls were primarily attributed to the continued contraction of the gross profit margin. The selling prices of gold phosphate and acid phosphoric declined in both domestic and global markets during the quarter.

This year, Duc Giang Chemical aims for total revenue of VNĐ10.2 trillion, up 4.7 per cent from the previous year. The projected profit after tax is VNĐ3.1 trillion, a decrease of 4.4 per cent, with an expected dividend payout of 30 per cent. — VNS