Vingroup Joint Stock Company (VIC) Q2 2024 earnings summary

Executive summary

• 1H2024 fundamentals in Vietnam remained solid, supporting strong expectations for 2H2024.

• Net revenue for Q2 2024 was VND 43,304 billion, down 8% year-over-year, with a 20% decline in gross profit due to lower real estate sales and higher costs.

• Net profit after tax for Q2 2024 reached VND 684 billion, up 71% year-over-year, mainly due to increased other income and lower deferred tax expense.

• Vingroup reported VND 65.0 trillion in net revenue and VND 2.0 trillion profit after tax for 1H2024.

• Completed divestment of 70% interest in SDI, which holds 41.5% in Vincom Retail.

Financial highlights

• 1H2024 revenue declined 27.6% YoY to VND 67.1 trillion; gross profit down 43% YoY.

• EBITDA rose 39.6% YoY to VND 22.4 trillion; profit before tax fell 17% YoY.

• Gross profit margin at 20.4% in 1H2024, down from 31.3% in 1H2023.

• Q2 2024 net revenue: VND 43,304 billion (Q2 2023: VND 47,295 billion).

• Operating profit: VND 1,454 billion, down 65% year-over-year.

Outlook and guidance

• Revised 2024 guidance to 80,000 cars, focusing on domestic and select international markets.

• US plant timeline adjusted to 2028 to optimize capital allocation.

• Anticipates 2H2024 momentum with new mega real estate projects and bulk sales; two deals (~VND 40 trillion) close to finalization.

• Hospitality expects strong recovery, especially from China, South Korea, and Russia.

• Vinmec to expand with two new hospitals and one clinic; Vinschool to launch five new campuses.