Viglacera’s earnings better than expected this year

Hanoi (VNA) - Increasing demand for green, environmentally-friendly materials and devices may help Viglacera earn higher-than-expected pre-tax profits this year.

The largest ceramic and tile producer by market value expected actual full-year pre-tax profit to beat projections by nearly 16 percent, heard the firm’s annual shareholder meeting on June 26.

Viglacera had previously set a 2019 target of 9.3 trillion VND (399.2 million USD) in total revenue and 950 billion VND (40.8 million USD) in pre-tax profit. The figures would mark an increase of 5.5 percent and 12.2 percent year-on-year.

But actual earnings this year may reach 1.1 trillion VND (47.2 million USD) in pre-tax profit, 15.8 percent higher than the original forecast.

According to the firm’s management board, pre-tax profit of 1.1 trillion VND was feasible.

In the first half of the year, the group estimated pre-tax profit of its parent unit was 422 billion VND, accounting for 65 percent of the annual target. 

The company attributed its confidence in future growth to high demand for green building materials and said it would make further investments in this area.

The company acknowledged difficulties ahead as the property market was showing signs of slowing down and Chinese products were becoming more competitive.

However, the signing of the Europe Union-Vietnam Free Trade Agreement (EVFTA) may offer the firm new opportunities abroad for glass exports.

In addition, chances will come from stronger market purchases of solar energy. The solar energy sector has grown strongly in recent years, especially in the south central region.

The Ministry of Construction will continue to sell the State capital it holds in Viglacera to zero percent by early 2020 in accordance with the Prime Minister’s Decision 1232/QD-TTg dated August 17, 2017.

The construction ministry is holding 173 million Viglacera shares, equal to a 38.6 percent stake in the company.

The ministry sold 69 million Viglacera shares – accounting for 85 percent of total shares offered for sale – at an auction on March 29 for 1.58 trillion VND.

In 2018, Viglacera posted 8.8 trillion VND (377.8 million USD) in total revenue, down 4.2 percent year-on-year. Its post-tax profit last year fell 10.7 percent to 667 billion VND (28.6 million USD).-VNA