Vinasun's profit plunges 18%

By Anh Tu   January 30, 2024 | 01:37 am PT
Vinasun's profit plunges 18%
A man getting on a Vinasun cab in HCMC. Photo by VnExpress/Phuong Dong.
Major taxi firm Vinasun posted VND151 billion (US$6.17 million) in after-tax profit in 2023, down 18% from the previous year.

According to its consolidated financial report for the last quarter, Vinasun earned VND277 billion in revenue and VND25 billion in after-tax profit, down 14.6% and 54.6% year-on-year, respectively.

Over the entire year, Vinasun's revenue managed to grow 11.8% to VND1.218 trillion thanks to a 52.7% surge in revenue in the first half.

However, its cost of goods sold jumped 21.5%, which caused the after-tax profit of the company to decrease by over 18% to VND151 billion.

While the profit figure is much more positive than the VND200 billion losses during the pandemic, it stands at only half the profits achieved during Vinasun’s golden period of 2014-2016.

Vinasun attributed the substantial profit decline to both reduced revenue and the company's policy of providing financial support to its drivers and partners, which substantially drive up the cost of goods sold.

Moreover, the firm’s interest, selling, and other expenses increased throughout the year, contributing to a sharp decline in its profit.

In addition to fierce competition from ride-hailing services, Vinasun has recently been grappling with multiple businesses and individuals illegally using its brand, creating fake websites and hotlines to deceive consumers.

Despite legal actions against four businesses, the problem remains unresolved.

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