FLC Group reported a net loss of VND 466 billion in the first quarter of 2022
Coporation, group FLC (FLC) has just released its consolidated financial statements for the first quarter of 2022, recording revenue from sales and service provision of VND1,085 billion, down 58% over the same period last year. Doing business below cost caused FLC a gross loss of more than 14 billion dong, while the same period last year made a profit of more than 108 billion dong.
In particular, financial expenses increased sharply by 3 times to 161 billion dong, mainly due to the increase in interest expenses and provisions for investments.
In addition, FLC also suffered a loss of 265 billion dong because of its investment in joint ventures – associates. As of March 31, 2022, FLC is suffering a loss of more than 651 billion dong from the aviation segment (currently holding 21.7% capital in Bamboo Airways).
As a result, FLC reported a net loss of VND 466 billion in the first quarter of this year, while in the first quarter of 2021, a net profit of VND 43 billion.
FLC’s consolidated financial statements for the first quarter of 2022.
As of March 31, 2022, FLC is suffering a loss of more than 651 billion dong from the aviation segment (currently holding 21.7% capital in Bamboo Airways).
Explaining the above figure, FLC said that in the period revenue and COGS decreased by 58% and 54% respectively over the same period last year due to:
(i) The Group narrows down its trading business.
(ii) Real estate revenue also decreased due to the strong outbreak of the Covid-19 epidemic across the country, limiting direct construction workers at works for handover.
(iii) The resort service business also declined due to the impact of the epidemic.
(iv) Financial expenses also recorded an increase of 185% over the same period last year due to an increase in provision for investments.
As of March 31, 2022, the Company’s total assets are at VND 35,496.5 billion. Cash and cash equivalents were at VND 291 billion, short-term receivables accounted for a large proportion of VND 14,898 billion.
Notably, liabilities increased by nearly VND 2,100 billion, mainly due to an increase in short-term prepayment (1,207 billion) and short-term loans (1,169 billion). Current debt is 7,100 billion dong, including 3,204 billion short-term loans and 4,106 billion long-term loans.
Currently, FLC’s biggest creditors include Saigon Thuong Tin Vietnam Commercial Joint Stock Bank (Sacombank, STB) and Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV, BID). In addition, FLC also borrows from a number of other banks such as National Commercial Joint Stock Bank (NCB), Orient Commercial Joint Stock Bank (OCB)…
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