Vinhomes profit drops 25% to $1.24 bln in 2022

Vinhomes, a subsidiary of Vietnam’s largest private conglomerate Vingroup, reported after-tax profit of VND29 trillion ($1.24 billion) in 2022, down 25% year-on-year.

Vinhomes, a subsidiary of Vietnam’s largest private conglomerate Vingroup, reported after-tax profit of VND29 trillion ($1.24 billion) in 2022, down 25% year-on-year.

Its consolidated net revenue was VND62,392 billion ($2.66 billion), down 26%.

In the fourth quarter of 2022, the company recorded consolidated net revenue of nearly VND31,200 billion ($1.33 billion), up 34% year-on-year, thanks to the handover of 2,200 more low-rise real estate units at the Vinhomes Ocean Park 2 - The Empire project.

The 458-hectare project, located in Nghia Tru and Long Hung communes, Van Giang district, Hung Yen province near Hanoi, made its debut in April 2022.

Illustration of the Vinhomes Ocean Park 2 - The Empire project. Photo courtesy of Vinhomes.

The company's real estate transfers were still its largest source of revenue with nearly VND28.7 trillion ($1.22 billion) in the quarter, accounting for nearly 92% of total consolidated revenue and up nearly 39% year-on-year.

In addition, it offers general construction services, design consultancy, and construction supervision.

Revenue from real estate management and rental services brought in trillions of dong (VND1 trillion = $42.65 million), all growing positively compared to Q4/2021.

Vinhomes JSC, listed on the HCMC Stock Exchange as VHM, is one of Vietnam’s largest real estate developers. It has been a pioneer in building and operating large-scale residential projects.

As of December 31, 2022, Vinhomes's total assets stood at VND361,200 billion ($15.4 billion), up 57% compared to the beginning of the year. Of this, cash and cash equivalents were more than VND14,700 billion ($626.86 million), up 53% thanks to the successful launch of the Vinhomes Ocean Park 2 - The Empire project.

Stable cash sources have helped Vinhomes to proactively accelerate the construction and further development of major projects and reduce dependence on loans. As a result, net debt only accounted for about 14.4% of equity.

By the end of Q4/2022, Vinhomes' equity stood at VND148,400 billion ($6.33 billion), up 13% compared to the beginning of the year.