Vinasun's profits halved

In the third quarter, Vinasun taxi company made a profit of nearly 33 billion VND, down nearly half compared to the same period in 2022 and down for four consecutive quarters.

The consolidated financial report for the third quarter shows that Vietnam Sun Joint Stock Company (Vinasun - VNS) recorded VND312 billion in revenue, down nearly 12% compared to the same period last year. The cost of goods sold decreased more slowly, pushing the profit margin to 21%.

During the period, the company's financial revenue increased by nearly VND2 billion, but financial expenses increased by VND5.6 billion. Along with that, sales and business management expenses increased simultaneously.

In total, Vinasun had VND32.8 billion in after-tax profit, down 46% compared to the same period in 2022. This is the fourth consecutive quarter that the company's profits have declined. In addition to the decrease in revenue, the board of directors said that support policies for drivers and driver partners also led to poor profit results.

In the first 9 months of the year, Vinasun had over 940 billion VND in revenue, up 23% and nearly 126 billion VND in profit, down 3% compared to the same period last year. This enterprise completed nearly 70% of the revenue target and 60% of the profit plan for the whole year.

Despite the decrease in profits, VNS's business picture is still much more positive than in the 2020-2021 period. During that time, the company that once led the taxi market share in Ho Chi Minh City only invested in 73 new cars while liquidating more than 2,900. The company also cut more than 2,500 jobs, including about 1,800 drivers.

This year, Vinasun targets VND1,345 billion in revenue and more than VND209 billion in after-tax profit, the highest level since 2017. The management board said the above targets were set at a cautious level when considering the decline in consumption since the end of last year.

The company believes that competition with technology taxis is a regular and continuous process. However, the company is confident that the number of customers using the Vinasun app has increased 5-6 times and they are "satisfied in every aspect". The company ensures that the ride-hailing app will always be updated and improved continuously.

This year, the taxi company plans to invest in 700 new cars, liquidate and sell 400 cars on credit to drivers for franchise business. It is estimated that the fleet will have more than 3,500 cars by the end of 2023. In addition, Vinasun considers researching the approach and business of electric cars as one of its key areas of focus.

Siddhartha

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