According to the semi-annual financial statements submitted to the HNX, Duy Anh Fashion and Cosmetics Joint Stock Company (DAFC), a high-end fashion business unit associated with the name of businessman Jonathan Hanh Nguyen, had to report a loss in the first half of 2023.
Specifically, by the end of the second quarter of 2023, DAFC recorded equity of VND 570.1 billion, a slight decrease compared to the beginning of the period. The debt/equity ratio decreased from 1.56 to only 1.42, equivalent to a decrease in debt of 9% to only about VND 809 billion.
DAFC of businessman Jonathan Hanh Nguyen's family reported a loss of 7.4 billion in the first half of 2023 (Photo TL)
Regarding the bond debt situation, the company reported that the bond debt decreased by 79%, to just over 17 billion VND at the end of June. The bond debt/equity ratio also decreased from 0.14 to just 0.03.
In the first half of 2023, DAFC lost 7.4 billion VND while in the same period it still recorded a profit of 130 billion VND. The after-tax profit margin therefore also decreased from 22.87% to minus 1.3%.
DAFC is well known in the high-end fashion business of businessman Jonathan Hanh Nguyen's family. The company has been distributing more than 60 high-end fashion brands in Vietnam.
DAFC’s declining business results in the first half of 2023 show that purchasing power in the retail industry is experiencing a significant decline. This goes against the trend of soaring sales in the luxury fashion industry in the previous 2 years.
In fact, in 2021 and 2022, a series of luxury brands in the world such as LVMH, Hermès... all announced soaring revenue despite forecasts of an approaching economic recession. However, the purchasing power of luxury fashion groups has begun to slow down this year. Typically, sales of brands such as Louis Vuitton, Dior, Gucci or Yves Saint-Laurent all grew slowly or even declined in the third quarter.
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