Vingroup's profit doubles in Q3

November 01, 2022 - 08:16
The strong increase in financial revenue in the third quarter helped Vingroup record a profit after tax of VNĐ506.3 billion, more than doubled over 2021.
Vinhomes Ocean Park 2 – The Empire in Hưng Yên Province. Photo courtesy of the company

HÀ NỘI — Vingroup on October 30 released its consolidated financial statements for the third quarter of 2022, with a profit after tax of over VNĐ506.3 billion (US$2 million).

In the third quarter, Vingroup’s net revenue from business activities reached VNĐ28.7 trillion, down 5 per cent over last year, whereas its gross profit halved to nearly VNĐ5.8 trillion.

During the period, the revenue from financial activities was 6.5 times higher than in the same period in 2021, amounting to nearly VNĐ10 trillion. The gains were attributed to the liquidation of financial investments and the transfer of subsidiaries.

The strong increase in financial revenue in the third quarter helped Vingroup record a profit after tax of VNĐ506.3 billion, more than double over 2021.

For the first nine months of 2022, the company’s total consolidated net revenue, including revenue from real estate transfer recognised in financial income in the first nine months of 2022, reached VNĐ88.19 trillion, a 4.7 per cent decrease year-on-year.

During the period, revenue from real estate transfers only began to rise sharply from the third quarter thanks to the delivery of low-rise apartments at Vinhomes Ocean Park 2—The Empire project started earlier than planned, while other sectors recorded good recovery and growth.

In the real estate segment, Vingroup will continue to deliver a large number of products in the coming quarters and in 2023, and the number of vehicles delivered in the fourth quarter is also expected to inch higher due to the increase in component supplies.

Other business segments, like leasing investment property (mainly from commercial centre businesses), hotel services, tourism, entertainment, health care, and education, are forecast to continue to recover strongly in the near future.

As a result, its profit before tax reached nearly VNĐ8.74 trillion, and profit after tax was more than VNĐ1.57 trillion, down 10 per cent and 9 per cent on-year, respectively.

As of September 30, Vingroup's total assets advanced by 30 per cent over the end of 2021 to VNĐ555.5 trillion, mainly boosted by the successful launch of new real estate projects.

In capital mobilisation, since the beginning of 2022, Vingroup has successfully raised $760 million from the international capital market.

In October, the Asian Development Bank (ADB) arranged a $135 million climate change financing package for VinFast to support the production of public transport electric buses and a network of Vietnam's first national-scale electric vehicle charging stations.

In the retail real estate segment, Vincom Retail posted high growth in both revenue and profit over the same period last year and gradually recovered to pre-COVID-19 levels.

On the tourism and resort front, Vinpearl's activities continue to rebound according to the general momentum of the tourism market.

Vingroup’s shares, which are listed on the Hồ Chí Minh Stock Exchange (HoSE) ended Monday at VNĐ55,400 per share, down 0.54 per cent. — VNS