Agricultural machinery major VEAM earns $50 mln in Q1 profit from joint ventures, associates

Vietnam's leading manufacturer of agricultural machinery VEAM reported profit of VND1.18 trillion ($50 million) from eight joint ventures and associates in the first quarter of this year, down 11% year-on-year and accounting for 85% of its after-tax profit.

VEAM holds a 30% stake at Honda Vietnam, 20% at Toyota Motor Vietnam, and 25% at Ford Vietnam Limited, the leading automobile manufacturers in the country.

The Vietnamese manufacturer, registed on the unlisted public company market UPCoM as VEA, recorded after-tax profit of nearly VND1.37 trillion ($58.5 million) in Q1, down 7% year-on-year.

It earned net revenue of over VND1.01 trillion ($43.07 million) in the quarter, down 11%, according to its financial statement.

VEAM's main business is manufacturing, assembling and trading agricultural machinery and trucks, but most of the corporation's annual profit comes from joint ventures and associates.

As of March 31, 2023, VEAM's assets had stood at VND28.41 trillion ($1.2 billion), up 3% compared to the beginning of the year. Cash and bank deposits were VND15 trillion ($639.7 million), accounting for 53% of total assets, of which term deposits hit VND14.74 trillion ($628.4 million).

On the UPCoM, VEA shares were priced at VND37,000 ($1.58) at Tuesday's close.