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This year, the company set a target turnover and profit before tax in turn reached 494 billion and 38 billion on the base consumption total production reached 38.8 million litres, in which the soft drink cans over 78% of the contribution form. If not appear sudden income from financial activities, the more likely this goal is not completed in the period last year, as the company is facing a series of difficulties.
Positive business strategy innovation, Duong is still not rid of unprofitable scene after more than 10 years listed on the stock exchange floor.
First six months of the year, the beverage company Duong (symbol: SCD) record 153 billion revenue on sales, rising over 17% compared with the same period last year. This result also lose 24 billion compared with independent financial reporting earlier that main causes stem from the distributors are not payments on time as committed.
Do not be a cost burden is anti-surging sales, for the first time in more than a decade on the stock, “said Huang sá Sassafras” Duong reported after tax losses of more than 3.3 billion, during the same period still interest of approximately 14 billion. Not only that, in the report reviewed annual sale has just been announced, the audit also stressed that if the application of accounting standards, the company must set extract redundant retrenchment for employees estimated at the end of the second quarter of the year today is 9 billion, meaning the profit not distributed will decline an additional account respectively.
Duong increasingly exhausted before the big opponents in and outside the country.
Company executives said, the Ocean is still grappling with old technology from the year 2000 should not be able to meet the market demand of the production of the new product line fits with consumer tastes. As last year, the company launched new products but do not meet machinery should have to hire external machining makes reviews of capital sales and increased product prices, it’s hard to compete with similar products on the market.
As announced at the shareholders ‘ meeting in late May, the company has discontinued this product line to new plant project in Cu Chi district (HCMC) approved the new computer to grow back. The total investment cost of the project is estimated at around 400 billion, partly from own funds and partly from the transfer of real property owned by the company. The rest of about 100 billion will have external mobilization plan. However, the moment the project is still open by “if want machinery investments must follow the process, and are advocates Of Beer Company-Wine-Saigon beverage approved then implement”.
Since listing to date, which the owner of the company remains at the level of 85 billion. Annual profits largely devoted to dividend exceeded budget plans for sales and marketing is very limited compared to the business sector. Currently the overwhelming priority company resources into our main products are construction should promote cost lack of root beer stand for new products, leading to effective not always as expected.
In addition to the internal factors in the competitive pressures of the market with the “big” in the beverage industry such as Pepsi, Coca-Cola or the names of the new market participants such as URC (Philippines), Masan … led the company’s business situation more difficult. Many of the airline’s market research shows that the beverage industry in Vietnam remain high growth with the average rate from 8-12% a year should foreign business from capital will continue to flow in. According to the analysis of corporate leadership, foreign beverage firms often give discount wholesale competitive strategy for domestic businesses pinched. In 2016, the company must reduce the selling price of 4.5% to compete with products of famous brands, pull in revenue just completed 89% of the plan.