Bien Hoa Sugar Joint Stock Company explained the fluctuation in the consolidated revenue and profit in Quarter 2/2013 compared to Quarter 2/2012 based on the consolidated financial statements as follows:
The Company’s profit from production activities decreased 247.63%
because of the following reasons:
-
Compared to Quarter 2/2012, revenue in Quarter 2 of this
year decreased 30.58%, in which revenue from sugar went down 21.41% because:
+
Selling quantity of sugar decreased 14.86%
+
Average selling price of sugar decreased 7.7%
-
Financial expense in Quarter 2/2013 increased 442.54%. In
which, borrowing expense rose 447.41% because the Company reserved sugar for
production as plan 2013. Materials inventory at June 30, 2013 rose 2,312.29%
against June 30, 2012. Finished goods inventory at June 30, 2013 rose 363.76%
against June 30, 2012.
-
Selling expense in Quarter 2/2013 increased VND10.65
billion, or 75.82%, compared to the same period of 2012. In which:
+
Transport expense rose 80.98%.
+
Marketing expense rose 113.28%
-
Administrative expense in Quarter 2/2013 increased VND683
million, or 7.7%.
Besides, the Company’s profit from securities investment was lower than
the same period of 2012 because in Quarter 2/2013 it set up a provision for devaluation of securities
worth VND836.3 million, while in Quarter 2/2012 the securities investment did
not arise.
Therefore, because of the reasons above, the consolidated pre-tax profit
of Bien Hoa Sugar Joint Stock Company in Quarter 2/2013 decreased 253.81%
compared to Quarter 2/2012.
