Vinasun's revenue drops to 2-year low

Vinasun recorded net revenue in the third quarter of 2024 of more than VND 246 billion, down 21% year-on-year and the lowest level since the second quarter of 2022.

The third quarter 2024 financial report of Vietnam Sun Corporation (Vinasun, stock code: VNS) recorded net revenue of VND 246 billion, down 21% compared to the same period last year. This is the lowest quarterly revenue in the past 2 years of Vinasun. Gross profit for this period reached VND 44.7 billion, equivalent to a gross profit margin of more than 18%.

Financial and administrative expenses both decreased year-on-year, down 11% to VND6.5 billion and 13% to VND20.5 billion, respectively. After deducting expenses, the company reported a profit after tax of approximately VND21 billion, down 36% year-on-year.

Explaining the decline in business results compared to the same period last year, Mr. Tran Anh Minh - Deputy General Director of Vinasun - said that the company maintained a policy of additional support for drivers and partners.

In the first 9 months, Vinasun achieved net revenue of VND 778 billion, down 17% compared to the same period in 2023. Passenger transport by taxi contributed VND 657 billion in revenue, the rest was contract transport and service provision.

Gross profit was over VND143 billion, down 30% year-on-year. Gross profit margin accordingly decreased from 21.6% to 18.4%. The company reported a profit after tax of about VND60 billion, down more than half compared to VND126 billion in the same period.

At the annual meeting at the end of April, many shareholders questioned Vinasun's board of directors about the impact on business operations due to the appearance of the SM Green Taxi company. Accordingly, the company's board of directors admitted that the company's market share was affected by two basic factors: the decline in consumer demand and competition from taxi companies in the industry. To overcome difficulties and increase competitiveness in the market, Vinasun plans to invest in 700 hybrid taxis this year (with a total investment of about 630-650 billion VND), and if things go well, it can increase to 1,000 vehicles. The company calculates that hybrid vehicles can reduce fuel costs by up to 50% compared to gasoline vehicles.

Because of anticipating the above unfavorable factors, plus the fact that profits are also affected by policies to support drivers and adjust fares and revenue sharing ratios of self-employed vehicles, vehicles in cooperation with individuals and franchised vehicles, Vinasun set a relatively cautious business target for 2024.

Specifically, the company expects this year's revenue to be around VND1,107 billion, down 10% compared to 2023's business results. The pre-tax profit target is over VND80 billion, down 47% over the same period. Thus, the business results for the first three quarters of the year have completed 70% of the revenue plan and 74% of the profit target.

As of the end of September 2024, Vinasun's total assets were nearly VND 1,812 billion, an increase of VND 160 billion compared to the beginning of the year. Long-term items accounted for the majority of the company's asset structure with more than VND 1,369 billion. Liabilities were more than VND 686 billion, an increase of VND 200 billion compared to the beginning of the period. Owner's equity reached VND 1,125 billion, undistributed profit after tax was approximately VND 91 billion.

Source: https://baodautu.vn/doanh-thu-vinasun-xuong-thap-nhat-2-nam-d228348.html