Dairy producer posts 15.55b dong loss in 2010

Hanoi Milk Joint Stock Co (HNM) has recently announced the business results in Q4 2010 and explained about the loss of over 15 billion dong in 2010.

Accordingly, the company’s revenue from merchandises and services in Q4 2010 was 938.3 billion dong, bringing the total figure in 2010 to 340.6 billion dong. HNM’s after tax profit in Q4 2010 was -15.797 billion dong and the total loss in 2010 was -15.55 billion dong.

Ending 2010, HNM’s revenue from sales was 340.58 billion dong, rising 18.99 percent against 2009′s. However, the dairy producer lost 15.55 billion dong. In Q4 alone, HNM’s revenue from merchandises and services reached 98.2 billion dong, a year-on-year rise of 39.7 percent but for the full year 2010, HNM posted a loss of 15.8 billion dong.

HNM said that there were three main reasons causing its loss in 2010. The first was due to the high price of materials and input costs. The second was due to the consequences from Melameane hurricane since the end of 2008 so the company’s brand continued going down, causing difficulties in merchandise operations. The last was due to high costs in Marketing operations and sale costs in 2010. In 2010, the company invested in developing the southern market so its sale costs increased strongly. The total Marketing expenditure and sales in 2009 accounted for only 14.86 percent of the total revenue while in 2010 it accounted for 16 percent.

In addition, in the fiscal report ending on December 31, 2010, the company included the backup for non-performing loans from 2008 such as 500 million dong of Duc Tan Saigon Packaging JSC and 407 million dong of Ha Ninh Trading JSC.

In 2010, HNM passes a revenue including tax at 420 billion dong, after tax profit at 14.183 billion dong and the earnings per share (EPS)a at 1,134 dong.

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