Loc Troi sets a fixed rate of profit every two years

At the general meeting of Loc Troi Group (LTG) on April 14, shareholders approved the plan of profit after tax of 400 billion VND per year for 2 consecutive years. This is the first time a business has set a profit plan that does not fluctuate for 2 years in a row.

The management explained the above plan because of the decision to set aside all excess profit after tax into the risk reserve fund (the fund was established in May 2021) for affiliated farmers and their team. corporation employees. Therefore, when the plan is set at a fixed rate of 2 years, this fund can accumulate more if the business exceeds the target.

“Pandemics and natural disasters are very unpredictable, so setting aside excess profits into the risk fund will help accumulate an “insurance” reserve for farmers and employees in the event of great fluctuations, helping them to stay safe. focus on farming, stabilizing the production chain,” said Mr. Huynh Van Thon, Chairman of the Board of Directors of Loc Troi Group. Loc Troi’s management board commits not to receive bonuses for exceeding business results until these two funds have accumulated 360 billion VND each.

Also at the meeting, shareholders approved the plan to increase the company’s charter capital by 100 billion VND to 905 billion VND. The purpose is to help the company have financial resources for the implementation of strategic activities in the near future.

By the end of the first quarter, the preliminary report of the company’s management showed that the net revenue of the first 3 months of the year was 2,345 billion VND, and the profit after tax was 184 billion VND, equal to the same period last year.

This year, Loc Troi is experimenting with new directions, including providing farming services, consuming, distributing and exporting vegetables and fruit trees, and gradually expanding into the domestic food market. cattle, organic products, microbiology…

Loc Troi expects that in 2022, it will link production and consumption of about 105,000 hectares with farmers in the province, exporting more to other continents to expand market share. In February, Loc Troi Agricultural Products – a member of LTG, delivered export orders of more than 4,500 tons of rice, worth more than 3 million USD (about 80 billion VND) to long-term partners such as Italy and France. , Canada, Singapore, Philippines… This order includes fragrant rice, white rice, brown rice and sticky rice.

Last year, LTG surpasses profit plan with more than 418 billion dong, an increase of more than 13% compared to 2020. The company also recorded more than 10,200 billion dong in revenue, an increase of more than 36% and the highest level ever. The above result was achieved because the company exported more than 80,000 tons of rice, nearly 4 times increase in output, despite the high sea freight rates.

Hong Chau