Viettel Post's revenue drops to 3-year low

Financial Business - Securities

Thursday, May 4, 2023 14:00 (GMT+7)
30 minutes ago

Continuing to spend heavily on employees, Viettel Post's profit has narrowed to nearly 76 billion VND. Last quarter, the company's profit also decreased by 98% due to this expense.

According to the consolidated financial report for the first quarter, Viettel Post Joint Stock Corporation (Viettel Post - VTP) recorded net revenue of VND 4,772 billion , down more than 17% over the same period last year and 9% lower than the previous quarter of 2022. This is also the company's lowest quarterly revenue since 2021.

Because cost of goods sold accounts for 96% of revenue, the gross profit of this postal company is only about 176.5 billion VND .

During this period, Viettel Post continued to record an increase in costs for business management activities, with an increase of 76%, to more than 91 billion VND , especially expenses for employees. After deducting other expenses and the amount paid to the State, the net profit of this postal enterprise narrowed to nearly 76 billion VND , 27% lower than the figure in the same period in 2022.

In the explanatory report, Viettel Post's leaders also explained that the increase in operating and labor costs in the last quarter was to ensure service quality. In the previous quarter, Viettel Post's profit dropped by 98%, down to 1 billion VND, also due to a sudden increase of 66% in business management costs.

With this year's business plan reaching 18,464 billion VND in total revenue and 376 billion VND in net profit, Viettel Post has completed 26% of its revenue target and 20% of its profit plan after the first quarter.

VIETTEL POST'S QUARTERLY REVENUE DECLINES SHARPLY
Source: Corporate Financial Statements; Synthesis
Label		I/2021	II	III	IV	I/2022	II	III	IV	I/2023
Net revenue	billion dong	5158	5193	5110	5962	5772	5461	5154	5252	4772
Profit after tax		109	106	32	50	103	97	56	1	76

Last year, Viettel Post's net revenue reached VND21,637 billion , up only 0.8% compared to 2021. The company's after-tax profit was nearly VND258 billion , down 13%. The actual figures only reached 85% and 52% of the original plan, respectively.

As of the end of this period, the enterprise ranked 3rd in domestic express delivery market share held 341 billion VND in cash and cash equivalents, including 315 billion VND in non-term bank deposits. Compared to the beginning of the year, this financial item has decreased by 25%.

The company also has a term deposit worth nearly VND2,000 billion . However, the delivery company also has short-term loans with a total value of VND1,344 billion from a number of banks, accounting for 35.4% of total liabilities. In addition to loans, Viettel Post also has other short-term payables with a large proportion, reaching VND1,212 billion .

Viettel Post's total assets as of the end of the first quarter reached VND5,247 billion , down 8.5% compared to the beginning of the year. Owner's equity increased slightly from VND1,389 billion to VND1,453 billion . The company also has more than VND300 billion in undistributed after-tax profit.

Viettel Post, formerly known as the Press Distribution Center, was established in 1997 with the initial mission of serving agencies within the Ministry of National Defense. In 2006, Viettel Post Company converted from a dependent accounting model to an independent accounting model, establishing Viettel Post State-owned Company Limited. In 2009, Viettel Post officially operated as a joint stock company after successfully implementing the equitization plan through the initial public offering of shares.

Viettel currently owns branches in 63 provinces and cities, 10 functional departments, 4 centers, 5 member companies, more than 2,000 post offices and stores with nearly 40,000 employees. In addition, the company also owns 3 regional distribution centers, 4 fulfillment distribution centers, 98 provincial distribution centers nationwide with a total warehouse area of nearly 740,000 m2.

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Minh Khanh

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