Vietnamese group Bamboo Capital's 2024 profit after tax up 394%

Bamboo Capital Group earned profit after tax of VND844.8 billion ($33.68 million) on consolidated net revenue of VND4,372 billion ($174.32 million) in 2024, up 393.8% and 9% year-on-year, respectively.

The results were mentioned in the group's (HoSE: BCG) financial statement for Q4/2024, released on Friday.

In the quarter, Bamboo Capital recorded net revenue of VND1,133.7 billion ($45.2 million), a slight decrease of 3.8% over the same period last year.

However, profit after tax recovered strongly year-on-year to VND96.5 billion ($3.85 million) thanks to a reduction in interest expenses of VND102.7 billion (equivalent to a drop of 25.9%) and profits from restructuring investments in affiliated companies.

Bamboo Capital Group recorded consolidated net revenue of VND4,372 billion ($174.32 million) for the whole 2024, up 9% compared to 2023.

Of which, the renewable energy segment (VND1,278 billion) accounted for 29.2%, infrastructure construction (VND989.2 billion) 22.6%, financial services (VND953.1 billion) 21.8%, real estate (VND668.7 billion) 15.3%, and manufacturing (including Nguyen Hoang Furniture and pharma subsidiary Tipharco - VND482.8 billion) 11%.

The renewable energy segment continued to be a bright spot as it maintained a stable revenue source thanks to the good performance of solar power plants.

Electricity output in 2024 of operating plants reached 749.0 million kWh, up 14.5% over the same period last year, of which the Phu My solar power plant (330 MW) contributed 488 million kWh, up 21.2% compared to 2023.

Financial services also had impressive growth, contributing 21.8% to Bamboo Capital Group's revenue. The figure for the same period in 2023 was 8.2%.

This breakthrough was mainly derived from the contribution of AAA Insurance Corporation with insurance premium revenue in 2024 reaching VND1,589.7 billion ($63.39 million), up 149.1% year-on-year.

AAA Insurance exceeded its 2024 business plan by 54.6% thanks to the strategy of expanding the multi-channel distribution network and focusing on exploiting key insurance products with large market space.

In addition, following Bamboo Capital's acquisition in Q2/2024, Tipharco contributed VND297.4 billion ($11.86 million) to the group's revenue, increasing the proportion of the group's manufacturing segment to 11% from 4% in the same period last year.

It can be said that Bamboo Capital Group's revenue came evenly from its segments which helps to increase the competitiveness and minimize market risks.

Bamboo Capital's 2024 profit after tax reached VND844.8 billion ($33.68 million), up 393.8% compared to 2023. The result largely came from a VND478.5 billion reduction in financial costs, equivalent to a 30.2% drop compared to 2023, due to BCG Energy buying back two lots of bonds worth VND2,500 billion ($99.68 million) before maturity.

This effective cost governance strategy has helped reduce debt pressure, improve the corporate financial health, and create a foundation for long-term investment plans and seizing market opportunities.

As of December 31, 2024, Bamboo Capital Group's total assets reached VND46,552.6 billion (nearly 1.86 billion), up 10.7% against the beginning of the year, thanks to the acquisition of Tipharco.

The group's equity increased sharply by 22.5%, reaching VND21,393.6 billion. Thanks to that, the debt to equity ratio continued to decrease for many consecutive years, down to 1.2 times by December 31, 2024.

According to the group's cash flow report as of December 31, 2024, net cash flow from business activities was negative VND1,804.2 billion ($71.94 million), indicating that Bamboo Capital actively promoted investment activities.

In 2024, the group expanded investment into the waste-to-power segment, and accelerated construction of real estate projects Malibu Hoi An in Quang Nam province and King Crown Infinity in Ho Chi Minh City.

Notably, net cash flow from financial activities changed from negative VND427.7 billion to positive VND2,021.1 billion ($80.59 million) at the end of Q4/2024 thanks to revenue from a public offering of shares. It showed that Bamboo Capital is actively adding capital to serve production and business activities, while maintaining its liquidity at a safe level.

Entering 2025, Bamboo Capital's renewable energy company, BCG Energy, plans to expand waste-to-power projects in many provinces and cities, accelerate wind power projects, and deploy additional types of green energy projects.

The company also plans to diversify capital sources through issuing green bonds, convertible bonds, and cooperating with reputable partners to reduce debt pressure and effectively control financial costs.

The real estate segment undertaken by BCG Land will focus on handing over the Hoi An d'Or and Malibu Hoi An projects.

The construction and infrastructure segment has a lot of room for revenue growth when it owns a backlog value of up to VND8,300 billion ($330.94 million) in 2025, and is implementing many large infrastructure projects in Dong Nai province and the River Delta region.

With a stable financial foundation, focused multi-industry business structure, and positive economic outlook, Bamboo Capital is forecast to continue recording positive results in 2025.