Sarsi Chuong Duong, once a prominent beverage manufacturer in the South, experienced a loss of nearly 20 billion VND in the first three months of 2024. This marked the 13th consecutive quarter of operating below cost price for the company. Despite an increase in revenue from investment in real estate, revenue from semi-finished products decreased, leading to an overall deficit.
The company’s revenue for the first quarter was about 56.8 billion VND, a decrease of 11% compared to the same period in 2022. Efforts were made to cut costs and optimize operations, but external economic conditions and low demand continued to impact business performance. The company reported a loss of nearly 20 billion VND after tax, marking its cumulative loss to nearly 218 billion VND with negative equity of 28.7 billion VND.
Revenue from financial activities saw a significant increase, mostly from interest on deposits, loans, dividends, and shared profits. However, this increase was not enough to cover fixed costs, especially with rising financial costs due to interest payments on loans. Additionally, selling costs increased mainly due to higher land rent expenses.
In May, the Ho Chi Minh City Stock Exchange (HoSE) announced the mandatory delisting of SCD shares due to consecutive losses in recent years. Chuong Duong Beverage Company faced challenges from competitors with newer technologies and struggled with rising input costs and challenging market conditions last year despite efforts to improve sales through expanded distribution channels and investing in packaging and promotions.
