Fahasa’s bookstore has a record low profit

Last year’s consolidated financial statements from Ho Chi Minh City Book Publication Joint Stock Company (Fahasa) recorded a 15% decrease in revenue over the same period, reaching around VND 2,840 billion. The company had a gross profit of nearly 580 billion dong, but after deducting expenses for sales, business management, and tax payments, its net profit was only 63 million dong. This is a record low profit from the business and well below the 14 billion dong level last year.

Fahasa’s management said the bookstore system had to close for months due to the epidemic, but when it reopened, there were no customers as demand waned and people were afraid to go to crowded places, so business results were severely affected.

Last year, Fahasa expected VND 3,600 billion in revenue and VND 20 billion in profit. However, at the annual meeting in June, the company only approved a planned revenue of 3,100 billion VND and a profit before tax of 5 billion VND. At the end of November, the management reduced the revenue target to VND 2,700 billion and received a loss of VND 5 billion. Therefore, the profit is small, but compared to the customized plan, the company still far exceeds.

Fahasa has total assets of nearly 1,100 billion dong, down about 150 billion dong compared to the beginning of the year. The company’s capital mostly comes from debt with a total debt of around VND 940 billion.

Fahasa was founded in 1976 under the name of publishing and distributing books belonging to the State 30 years later. By the end of 2020, the company has 115 bookstores in 46 provinces and cities, but so far the number of bookstores is only 75.

East

at Blogtuan.info – Source: vnexpress.net – Read the original article here