Thien Long (TLG) August profit decreased 30% compared to the same period

Thien Long Group Corporation (TLG), the owner of the famous Thien Long Ballpoint Pen brand, has just announced the company's production and business results in August. In which, net revenue in August reached 293 billion VND, down 9% compared to the same period. Profit after tax reached 28 billion VND, down 30%.

Thien Long Group's accumulated revenue in the first 8 months of the year reached VND2,511 billion, down slightly compared to the same period last year. Profit after tax in the first 8 months of the year reached VND305 billion, down 23%.

Compared with the 2023 revenue target of VND 4,000 billion and after-tax profit of VND 400 billion, Thien Long Group has currently only achieved 63% of the revenue target and 76% of the annual profit target.

The reason explained by the group is that the Vietnamese economy in 2023 will be affected by many unpredictable factors, causing difficulties for the retail industry. Especially for the stationery industry, the demand for investment and stockpiling of goods is not high. Meanwhile, the export market is also showing signs of decline.

In particular, sales and administrative expenses in the first 8 months of 2023 also increased by 14% compared to the same period last year, putting pressure on the company's revenue. TLG explained that the company is investing in developing its brand as well as its human resources to prepare for the peak season of the year.

Thien Long Group is one of the typical businesses affected by difficult economic conditions. In the fourth quarter of 2022, for the first time in several years, TLG had to record a loss.

Specifically, in the fourth quarter of 2022, TLG achieved revenue of VND 740.5 billion, gross profit decreased sharply to VND 296.3 billion. The company recorded a net loss from business activities of nearly VND 6 billion, a loss after tax of VND 2.8 billion. The last time TLG suffered a loss was in the first quarter of 2022 with a loss after tax of VND 19.9 billion.

In TLG's asset structure, as of the end of the second quarter of 2023, the company's total assets reached VND 3,031.4 billion. Most of which is equity with VND 2,002.6 billion. Liabilities only account for VND 1,028.8 billion, equivalent to more than 1/3 of assets.