Vinaconex reached VND92 billion pre-tax profit in Q3/2023Thursday, November 9,2023
AsemconnectVietnam - Compared to the same period last year, profit in the first 9 months of this year of Vinaconex (VCG - HOSE) decreased by 35%, while revenue did not decline. This is a common situation in construction companies as announced by the General Statistics Office at the end of September.
Vinaconex's third quarter separate financial report shows that the Corporation achieved VND1,219 billion in revenue, of which financial revenue reached VND336 billion, a sharp increase compared to VND179 billion in the same period last year, pre- The parent company's tax reached VND86.2 billion.
Accumulated for 9 months, the Corporation achieved VND5,328 billion in revenue, an increase of 17.3% over the same period. Pre-tax profit of the parent company reached VND165 billion, equal to 60% over the same period.
Two bright spots in the financial picture of Vinaconex Parent Company are that liabilities as of the end of the period were VND12,132 billion, down 18% compared to the beginning of the year, the item paid in advance by buyers reached over VND2,100 billion, considered as Vinaconex's savings when the business completes construction and investment obligations to hand over products to customers.
Based on the consolidated financial statements of the third quarter of 2023, revenue from sales and service provision throughout the Corporation reached VND2,381 billion; Profit before tax reached VND92 billion.
Accumulated in the first 9 months of the year, Vinaconex achieved VND8,915 billion in revenue, up 33% over the same period, consolidated pre-tax profit reached VND353 billion, after-tax profit reached VND205 billion, down 35% over the same period.
Compared to the same period last year, Vinaconex's profit in the first 9 months of this year decreased, while revenue did not decrease. This is a common situation in construction companies as announced by the General Statistics Office at the end of September.
Accordingly, the cost of direct materials used for construction activities always accounts for the largest proportion of the total production costs of construction enterprises. Results of a survey of nearly 6,000 businesses conducted by the General Statistics Office show that in the third quarter of 2023, up to half of businesses said direct material costs increased over the same period. In addition, input costs in the fourth quarter of this year will continue to increase compared to the third quarter, which is a big challenge for businesses in the industry.
The same is true for direct labor costs. In the third quarter of 2023, 40.5% of businesses expected direct labor costs to increase; 42.1% of businesses stated that direct labor costs remained unchanged. Not having new contracts and fierce competition to get contracts is also a difficulty for many businesses.
Entering the fourth quarter, the efforts of ministries, branches and localities in stabilizing construction material prices have partly helped make the market more stable, and are expected to no longer be the factor that most affects construction companies. From there, it can help businesses improve profit margins.
For Vinaconex, the prestige, brand, and capacity of the leading reputable contractor in the construction industry are the guarantees for the Corporation to continuously win many large contracts.
By the end of the third quarter of 2023, the value of Vinaconex's signed construction contracts reached tens of thousands of billions of dong, a very encouraging result in the current difficult context.
By the end of the first 9 months of 2023, Vinaconex has completed and handed over a series of key projects across the country such as Phu Bai International Airport (Thua Thien Hue); bidding packages under the investment project to build the Eastern North-South Expressway (phase 1), Vinh Tuy bridge (phase 2)... Also in this year, Vinaconex was the unit selected to participate in the construction of The bidding package under the Investment Project to build the Eastern North - South Expressway (phase II) is the Vung Ang - Bung sections; Van Phong – Nha Trang; Bai Vot – Ham Nghi; Tuyen Quang - Ha Giang expressway, investment project to build belt of 4 capital regions... and many other important projects.
Currently, Vinaconex and the Joint Venture are speeding up the construction progress of Package 5.10 main terminals under the Long Thanh Airport Construction Project with a budget of up to VND35,000 billion.
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