The share price of VGI Public Company Limited (SET: VGI) surged more than 4% on Monday despite the company disclosing billions of net losses for its fiscal year results as investors are positive on the business direction after disposing of all Kerry Thailand shares.
VGI reported a net loss of THB3.48 billion due to the share of loss from joint ventures, disposal loss of Kerry Express (Thailand) and impairment losses of investment in Jaymart Group.
As for its core business, advertising revenue rose 8.7% and digital services revenues saw a 8.5% rise from last year. Higher contributions from advertising and digital services segments were able to offset a 23% decline in revenue from distribution. Its gross profit was also up 7% as well.
In late March 2024, VGI completely divested all 15.45% of Kerry Thailand’s shares to SF International Holding (Thailand), citing intensified competition in a logistic industry that has been hindering Kerry’s business operation.
VGI had to record losses from investment quarters after quarters since the day of acquisition. In its 2023/24 fiscal year results, the company recorded THB2.3 billion of loss from disposal of investment and THB433 million of loss on impairment.
The financial results, though not quite something to show, could lower investors’ concerns more or less. The question now is how VGI will handle the situation with investment in Jaymart Group that is also generating less profit sharing for the company.
Additionally, VGI disclosed that the company will focus on existing business ventures in this fiscal year over the pursuit of expansion into new sectors. The company plans to record a total revenue of THB6.5 billion this year, compared to THB4.8 billion previously.
