- HT1 reported a Q1 2023 net loss of VND86bn (USD3.6mn) compared to NPAT-MI of VND25bn (USD1.0mn) in Q1 2022 while revenue achieved VND1.7tn (USD71.7mn; -14% YoY & -27% QoQ).

- The weak Q1 2023 results were driven by a 19% YoY (or 28% QoQ) decline in HT1’s total cement sales to 1.23 million tonnes amid 1) weak demand from domestic construction activities and 2) HT1 having a slow sales season to conduct maintenance.

- In addition to weak sales volume that caused higher fixed costs per tonne, the remaining high-cost inventory cleared in Q1 2023 added to the pressure on gross margin. HT1’s gross margin dropped to 4.5% in Q1 2023 compared to 9.1% in Q4 2022 and 8.4% in Q1 2022.