Bamboo Capital earns record-high profit in 2021

Profit after tax of Bamboo Capital in 2021 hit VND1 trillion ($43.4 million), an all-time high, according to the private multi-sector corporation’s audited financial report.

The figure is VND27 billion ($1.18 million) higher than that in its unaudited report and a 3.8-fold increase year-on-year.

The group’s (BCG) growth in profit after tax was primarily due to an expansion in revenue and profit from the group’s financial activities, which stemed from numerous M&A transactions in the real estate and renewable energy sectors, as well as a reduction in post-audit corporate management costs.

As of December 31, 2021, BCG’s total assets hit $1.65 billion, up 56.1% from 2020. Consolidated net revenue rose by 41% to $113.4 million.

Long-term assets climbed from $560.5 million to $938.8 million in a year. In terms of short-term assets, BCG increased its financial investment by 75% to $43.8 million.

“Due to the impact of Covid-19 on the development of real estate and renewable energy projects, BCG has flexibly invested in financial instruments to ensure optimal efficiency in using mobilised capital,” the corporation stated.

BCG's balance and cash equivalents at the end of 2021 were $45.7 million.

After the audit, BCG's liabilities remained nearly constant at $1.28 billion. Of which, short-term debt grew by $53.7 million, while long-term debt declined by $53.9 million compared to pre-audit statistics due to the reclassification of debt based on more appropriate time criteria.

The sharp increase in long-term debt in 2021 was mainly due to BCG mobilising long-term capital through bond issuances to fund its wind power projects.

In addition, BCG successfully halved its debt-to-equity ratio from 7.2 times at the end of 2020 to 3.5 times at the end of 2021.

“In 2022, BCG will continue to reduce the debt balance to less than two times to consolidate its financial structure, ensuring the group's sustainable development to cope with Vietnam’s and global economic uncertainties,” Pham Minh Tuan, Vice Chairman of BCG said in a recent statement.

BCG’s main business lines are agriculture, manufacturing, construction, trading, infrastructure, real estate, and renewable energy.