Chuong Duong Beverage Company, once a leading beverage manufacturer in the South, is struggling to stay afloat. The company experienced a loss of nearly 20 billion VND in the first three months of 2024, marking its 13th consecutive quarter of operating at a deficit. Despite a doubling of revenue from investment in real estate, totaling more than 6.2 billion VND, this was not enough to offset the decline in revenue from semi-finished products, which dropped to 52.7 billion VND.
Revenue from financial activities increased significantly, reaching over 1.1 billion VND, primarily from interest on deposits, loans, dividends and shared profits. However, this revenue was insufficient to cover fixed costs as financial costs rose by 2.5 times to nearly 10 billion VND due to increased interest expenses. The company’s outstanding loans and financial lease debt totaled over 609 billion VND.
Despite efforts to cut costs and optimize operations, external factors continue to impact the company’s performance. Unemployment rates and lower-than-expected demand have further strained business activities. The recent delisting of SCD shares by the Ho Chi Minh City Stock Exchange due to continued losses and negative charter capital further underscores the challenges facing Chuong Duong Beverage Company.
Chuong Duong was once known as Usine Belgique factory of BGI Group (France) and was the largest beverage factory in the South specializing in carbonated beverages with sarsa product line being its mainstay. Despite previous stability in profits, increased competition and outdated technology have led to declining market share for the company under new management it has faced challenges due to rising input costs and difficult economic conditions.
The recent delisting of SCD shares by the Ho Chi Minh City Stock Exchange due to continued losses and negative charter capital further underscores the challenges facing Chuong Duong Beverage Company.
In conclusion, Chuong Duong Beverage Company is facing significant financial difficulties with losses reaching nearly 20 billion VND after tax seven times higher than the same period in the previous year but lower than previous three quarters deficits marking their 13th consecutive quarter of financial losses for the company despite efforts made by new management it still faces challenges due external factors such as rising input costs and difficult economic conditions
