GELEX achieved VND 1,485 billion in profit before tax in 6 months, completed 57% of the plan in 2022
GELEX Group Joint Stock Company (HoSE: GEX) has just announced its financial reports for the second quarter of 2022 with a 6-month consolidated profit before tax of VND 1,485 billion, up by 47% over the same period in 2021 and completed 57% of the full year plan in 2022.
Net revenue in the first 6 months of 2022 reached VND 17,715 billion, profit before tax in 6 months reached VND 1,485 billion, up 34% and 47% respectively over the same period in 2021.
GELEX’s 6-month production and business results showed that its revenue structure shifted towards increasing the proportion of infrastructure segment and gradually balanced the proportion of revenue from production and business segments in the group. According to the consolidated financial reports for the first 6 months of 2022, the electrical equipment segment contributed VND 8,896 billion in revenue, accounting for 49% of the Group’s total net revenue; building materials contributed VND 4,503 billion, accounting for 25%; and Industrial park real estate and infrastructure contributed VND 3,381 billion, accounting for 20%; electricity and water production and business contributed VND 784 billion, accounting for 4.5% and other revenue reached VND 110 billion, accounting for 1.5% of the Group’s total net revenue. With this shift in revenue structure, GELEX has implemented quite well its multi-industry strategy, limiting the risk of decline when depending on a few markets.
In terms of gross profit, in the first 6 months, GELEX achieved VND 3,821 billion in gross profit, and gross profit margin reached 21.57%. With the stable operation of electrical equipment, this result came from an increase in the proportion of revenue and gross profit margin of the segments of building materials, real estate and electricity and water production and business.
In the second quarter and first six months of the year, although the net revenue and gross profit both increased, with general adverse effects from fluctuations in major markets around the world and macroeconomic factors such as inflation, exchange rate, interest rate, etc.,; the costs of the whole system increased compared to the same period in 2021. Financial expenses in the second quarter increased due to the increase in exchange rate differences, payment discounts and interest cost, LC fees & deferred purchase interest, and provisions for devaluation of trading securities. Selling expenses and administrative expenses also recorded an surge compared to the same period in 2021. Therefore, accumulated in the first 6 months of the year, GELEX’s consolidated profit before tax recorded VND 1,485 billion. Excluding CIT, net profit of the unit reached VND 1,085 billion.
In 2022, GELEX expected to reach VND 36,000 billion in revenue and VND 2,618 billion in consolidated profit before tax, which was a high growth rate of 26% and 27% respectively compared to the implementation in 2021. Hence, at the end of 6 months, GELEX completed 49% of the revenue target and 57% of the profit before tax target for the whole year.
In the next phase, for industrial production, GELEX continued to focus on improving business performance, expanding markets and maintaining its position as the leading unit in the segment of electrical equipment, at the same time expanding investment in electricity trading activities. In the segment of infrastructure, through its member units, GELEX focused on investing in industrial parks real estate and social housing, clean energy projects, water production and business, building materials, etc., continued to implement projects on schedule while increasing efficiency from project operation and exploitation in order to create a stable and solid revenue source in the long term.