The domestic market helped Thuan Duc increase 40% in revenue

The audited financial statements of Thuan Duc Joint Stock Company in 2020 (TDP) show that the company has reached 1,375.7 billion VND in revenue, up 14.95% compared to the implementation of 2019. Gross profit margin improved adding 1.3 percentage points, reaching 17.26%, helping gross profit to reach 237.5 billion, up 24.3% compared to 2019.
Spectacular growth amid a pandemic
In the context of difficult export operations, boosting domestic consumption has become a bright spot with 40% growth in revenue and 186% growth in gross profit, significantly compensating for the decline. of export activities.
Although the financial and administrative expenses also tended to increase, the good increase in gross profit and the reduction of more than 20.2% in selling expenses still helped the Company earn 95.2 billion dong of pre-profit. tax, up 22.8% compared to the implementation in 2019, the profit after tax reached 72.7 billion dong, up 17.4%. This is a quite positive result in the context that the Covid-19 epidemic has had a strong impact on the company’s export activities.
In addition to the positive business results, TDP’s financial statements also showed that the company’s cash flow has improved significantly over the past year with a surplus of more than 55 billion, reversing from negative 105, 6 billion VND in 2018.
By the end of 2020, inventories are the most valuable item in the asset structure of TDP with a value of 896.6 billion VND, up 14.5% compared to the beginning of the year, thereby accounting for nearly 50 % total assets. TDP’s inventory value increased sharply mainly because the company accelerated the storage of raw materials to prepare for production activities, meanwhile, the value of finished products inventory decreased significantly compared to the beginning of the year.
Bright outlook in 2021
In the context that many countries have started to vaccinate against Covid-19, the world oil and plastic resin prices have shown signs of sharp increase since the end of 2020, making the operation of many plastic enterprises affected.
As of January 2021, Brent crude oil price in North Sea rose to 51.29 USD / barrel, increasing for the third consecutive session. The US price of light sweet crude oil (WTI) increased to 48.23 USD / barrel. Plastic resin price also increased from 700 USD to nearly 1,300 USD / ton, corresponding to an increase of nearly 50%. Raw material prices in the US at $ 1,200 / ton for HDPE and $ 1,230 – $ 1,240 / ton for LLDPE film both on a CIF Southeast Asia basis were recorded in January.
Currently, Vietnam’s plastic industry has more than 2,000 businesses operating, and most of them have to import plastic materials from outside. By 2020, Vietnamese plastic enterprises need about 5 million tons of raw materials to serve their production activities. With the increasing demand for plastic resins and the rapidly increasing prices, the operation of many plastic enterprises has a negative impact.
Meanwhile, Thuan Duc enterprise has completely owned the input material source thanks to PP plastic recycling technology. This is a great advantage to help stabilize production and business activities as well as increase competitiveness in the market.
Besides, with many years of experience in the plastic packaging industry and the proactive and flexible preventive response, it is forecasted that Thuan Duc will have a bright prospect in 2021.