Covid causes first monthly loss for garment giant Thanh Cong
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Major garment company Thanh Cong has reported its first monthly loss this year in August as housing workers at its plants as a precaution against Covid-19 spread increased costs.
The company, formally known as Thanh Cong Textile Garment Investment, also saw revenues plummet by 26 percent year-on-year to $10 million, and, together with the ballooning expenses, this caused a loss of $282,000 for the month.
The company said production fell due to a shortage of workers amid the tightened social distancing requirements in HCMC despite having many of them stay on-site.
Its monthly net profit has not dipped below $600,000 this year. Its year-to-date profit is $5.48 million, only 44 percent of the full-year target.
Thanh Cong’s biggest export markets are the U.S., South Korea, Japan, and China.
It is looking for new buyers in Europe and countries that have signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
It is also pushing head with e-commerce sales after tying up with U.S. e-commerce giant Amazon last year.
Questions & Answers
Q.What specifically caused Thanh Cong to incur a loss in August?
What specifically caused Thanh Cong to incur a loss in August?
The loss was primarily caused by increased costs associated with housing workers at its plants to prevent Covid-19 spread, combined with a 26 percent year-on-year plummet in revenues. This resulted in a $282,000 loss for the month.
Q.How significantly did Thanh Cong's August revenues decline compared to the previous year?
How significantly did Thanh Cong's August revenues decline compared to the previous year?
Thanh Cong's revenues for August plummeted by 26 percent year-on-year, reaching $10 million for the month. This decline contributed to the company's first monthly loss this year.
Q.What is Thanh Cong's current progress towards its full-year profit target?
What is Thanh Cong's current progress towards its full-year profit target?
As of August, Thanh Cong's year-to-date profit stands at $5.48 million. This figure represents only 44 percent of its full-year profit target, indicating a significant shortfall.
Q.Which new markets is Thanh Cong targeting for expansion?
Which new markets is Thanh Cong targeting for expansion?
Thanh Cong is actively seeking new buyers in Europe and in countries that have signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The company is also expanding its e-commerce sales after partnering with Amazon.
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