Vingroup's net revenue rises 6.7% on-year to US$5.5 billion in 2019

Thursday, Apr 02, 2020 10:33

Customers check out at a Vinmart store. Private conglomerate Vingroup in early December sold a 64.3 per cent stake in Vinmart's operator VCM Services and Trading Development JSC for a profit of VND8.5 trillion (nearly US$360 million). – Photo courtesy of Vingroup

Private conglomerate Vingroup’s total net revenue rose 6.7 per cent on-year to VND130 trillion (US$5.5 billion) in 2019.

Total pre-tax profit last year was up 12.5 per cent year-on-year to VND15.6 trillion, according to the firm’s audited fourth-quarter financial report.

Total post-tax profit gained nearly a quarter to VND7.72 trillion in 2019.

As of December 31, 2019, the firm’s total asset reached VND403.7 trillion and equity was worth VND120.6 trillion, annual increases of 40 per cent and 22 per cent, respectively.

In 2019, Vingroup reported it sold 64.3 per cent of ownership or 414 million shares in VCM Services and Trading Development JSC to consumer company Masan for a profit of VND8.5 trillion.

In return, Vingroup would receive some stock options in a joint venture set up later by Masan and Vingroup. The deal was completed in early December 2019.

VCM was the unit that operated e-retailer Vincommerce and farming business Vineco.

In the first three months of 2020, Vietnamese businesses have struggled with the spread of coronavirus which hit the local economy quite hard.

Vingroup and its member companies have changed its ways of doing business to adapt to the situation.

Online platforms have become a priority tool for “Vin” companies to promote their products and reach out to customers, such as residential property developer Vinhomes, automaker VinFast and phone manufacturer VinSmart.

Shopping mall operator Vincom Retail has taken measures to sanitise shopping centres and increased protection for consumers. The company has also introduced a VND300 billion stimulus package for its clients. – VNS

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