Vincom Retail reports higher Q3 profit, but core sale drops sharply

Wednesday, Oct 30, 2019 07:08

The front view of Vinhomes JSC's Skylake project in Nam Tu Liem District, Ha Noi. The company reported an annual increase of 58 per cent in its revenue in the third quarter. — Photo

Property developer Vincom Retail JSC (HoSE: VRE) has reported its post-tax profit in the third quarter rose 29 per cent year-on-year to VND717 billion.

However, the company recorded its revenue fell a quarter to VND2.2 trillion in the third quarter from last year’s figure.

Q3 revenue fell because the company did not record the sale of any large-scale projects in the past quarter, it said in the statement on Monday.

Sales of property units dropped about 77 per cent year on year to only VND339 billion in the last quarter.

Meanwhile, the lease of property units and services increased by 29.3 per cent compared to 2018 to VND1.8 trillion, offsetting the drop in sales.

After nine months, Vincom Retail earned VND6.5 trillion in combined revenue, up 6 per cent year-on-year.

Post-tax profit rose 15 per cent yearly to VND1.97 trillion in the nine-month period.

The company shares, listed on the Ho Chi Minh Stock Exchange, edged up 0.5 per cent to close Tuesday at VND32,600 per share.

Its shares have lost about 12.6 per cent since its one-year high of around VND37,300 per share.

As of September 30, Vincom Retail owned VND37.6 trillion worth of total asset and VND28 trillion worth of equity capital.

Meanwhile, Vinhomes JSC (HoSE: VHM) – another property development unit of Vingroup JSC, announced its Q3 revenue jumped nearly 58 per cent yearly to VND10.9 trillion.

Gross profit soared nearly 154 per cent yearly to VND6.76 trillion in the past quarter. Pre-tax profit increased by 1.5 times to VND7.62 trillion.

According to the company, sales of property projects and services at Vinhomes Skylake, Vinhomes Ocean Park, Vinhomes Smart City and Vinhomes Star City contributed to the soaring earnings.

In the January-September period, Vinhomes recorded total revenue surged 68 per cent year-on-year to VND37.6 trillion.

Financial revenue, which mainly comes from profit distributed from co-developed projects, fell to VND7.7 trillion from VND11 trillion recorded in last year’s nine months.

Pre-tax profit in the period rose 41 per cent year on year to VND21 trillion.

At the end of September 2019, the company recorded VND161.6 trillion and VND63.5 trillion worth of total asset and equity capital.

Vinhomes shares went up 1.9 per cent to end Tuesday at VND87,600 per share.

Its shares have gained total 14.3 per cent since June end.

The parent group of both companies – Vingroup JSC (HoSE: VIC) – has not yet released its Q3 earnings report. — VNS

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