Despite a sharp increase in sales, Halico – the company that owns the Vodka Hanoi wine brand name still plagued to report a loss in the first quarter of 2021.
Hanoi Wine and Beverage Joint Stock Company (Halico – Ticker: HNR), the owner of Vodka Hanoi has just announced its Q1 / 2021 financial statements with net revenue of nearly 36 billion dong, up 10 VND billion (34.3%) compared to the revenue achieved in the first quarter of 2020. Among them, the majority is sales of alcohol products, accounting for about 96% of total sales.
Thanks to improved revenue, Halico’s gross profit also increased sharply to 11.3 billion dong, 2.7 times higher than the same period. However, because cost of goods sold and selling expenses still accounted for a large proportion, profit after tax in the first quarter of 2021 still suffered a loss of 1 billion dong but decreased by 88.4%, equivalent to a loss of 7.59 billion dong. with the same period in the first quarter of 2020 (loss 8.62 billion dong).
Net revenue in the first quarter of 2021 increased by nearly 10 billion dong compared to the first quarter of 2020.
In 2021, Halico targets net revenue of 115 billion dong and pre-tax loss of 31 billion dong. Thus, the company’s revenue target after the first quarter has been completed by 31%.
In 2020, Halico had a loss of 31 billion dong. However, this loss was lower than in 2019 (a loss of 65 billion dong) was thanks to the significant reduction in expenses. This is the 5th consecutive year this business has fallen into a loss situation.
Halico continuously fell into a state of loss.
According to Halico, the company has difficulty doing business due to changing and stricter tastes and requirements of consumers. In that context, Decree 100 strictly controls the consumption of alcohol and beer products, contributing to the decline in sales.
Halico outlined a development plan to open new showrooms. Besides, Halico continues to maintain and develop the Restaurant channel; search for consumer markets for 96% vol alcohol, 70% vol alcohol and HaliClean hand sanitizer.
Halico, formerly known as the Hanoi winery, was established in 1898 at 94 Lo Duc. The period 2008-2012 was when Halico achieved rapid growth in revenue, affirming its number one position in the wine industry of the country. However, Halico’s sales and profit figures plummeted in the two years 2013-2014 and started to sink in losses since 2015 up to now.
As of March 31, 2021, Halico’s total assets were only VND388 billion, down 7 billion from the beginning of the period, accumulated loss of VND445 billion increased by 31 billion compared to the beginning of the period.
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