Viwaco reports 30.7% increase in Q4/2023 profit thanks to increased clean water prices

Viwaco Joint Stock Company (UPCoM: VAV) has just announced its business results for the fourth quarter and the whole year of 2023. Accordingly, at the end of the fourth quarter of 2023, Viwaco recorded net revenue of nearly VND 249 billion, an increase of 34.6% over the same period last year.

This includes 243 billion VND in revenue from clean water business activities, nearly 3.2 billion VND from construction and installation activities, and nearly 2.7 billion VND in revenue from leasing pipes, goods, and other services.

During the period, the company's cost of goods sold increased by 34.9% to VND197.8 billion. Thereby, the company's gross profit from sales and service provision increased by 34.2% to VND51 billion.

Besides, the company's revenue from financial activities also increased by 54.5% from VND1.1 billion in the same period last year to VND1.8 billion.

Viwaco's financial expenses in the fourth quarter of 2023 were the only expense that decreased by 25.7% to VND2.6 billion. Meanwhile, selling expenses increased by 162.5% to VND4.2 billion and business management expenses increased by 17.6% to VND6 billion.

After deducting taxes and other expenses, Viwaco reported a fourth-quarter after-tax profit of more than VND34 billion, an increase of 30.7% over the same period last year.

Viwaco said that the profit in the fourth quarter of 2023 increased due to an increase of about 5% in clean water sales volume and the implementation of new clean water selling prices from July 1, 2023.

In 2023, Viwaco's accumulated net revenue reached VND832.4 billion, up 23.2% over the same period. The company reported a profit after tax of more than VND103 billion, up 18.3% over the previous year.

In 2023, Viwaco plans to have a revenue of more than 781 billion VND and a profit after tax of 88 billion VND. Thus, at the end of the year, the company exceeded the revenue plan by 6.6% and the profit target by 17%.

As of December 31, 2023, Viwaco's total assets were recorded at VND 867 billion, an increase of 10.3% compared to the beginning of the year. More than half were long-term assets with nearly VND 525 billion.

The company has VND263.8 billion in cash and cash equivalents, up nearly 60% from the beginning of the year. As of this date, the company's liabilities are VND240.5 billion, up 31.6% from the beginning of the period.

Viwaco was established on March 17, 2005, initially consisting of 3 founding shareholders: Vietnam Construction Import-Export Corporation VINACONEX, Hanoi Clean Water Trading Company and VIGLAFICO Joint Stock Company with the task of investing in the water supply network in the Southwest region of Hanoi city.

Receiving and supplying clean water from the Da River to all people in the Southwest area of Hanoi, including the entire Thanh Xuan District, part of Trung Hoa, Mai Dich, Cau Giay wards, Dinh Cong, Dai Kim, Thinh Liet wards of Hoang Mai district, Nam Tu Liem district and communes west of National Highway 1A, Thanh Tri district, Hanoi.

The company's business activities include: production and trading of clean water; consulting on investment in construction of specialized water supply projects; construction and installation of civil and industrial works, water supply and drainage, waste treatment, electrical works, transformer stations and lines up to 35KV; production and trading of machinery, equipment, and materials for the water industry ...

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