Vinhomes’ earnings fall 39% to $777 mln in Jan-Sep

Vinhomes, the largest residential housing developer in Vietnam, booked a net profit of VND19,642 billion ($777 million) in the first three quarters this year, down 39.2% year-on-year.

Revenue dropped 26% year-on-year to VND69,910 billion ($2.76 billion), Vinhomes said in its consolidated quarterly financial statement.

The nine-month earnings mainly came from sales of properties at the Vinhomes Ocean Park 2 and 3 projects in Hung Yen province, adjacent to Hanoi, and the Vinhomes Royal Island project in Hai Phong city.

Rising financial costs, driven mainly by increased bond issuances, and sales expenses were attributed to the company’s lower earnings in the period.

Between July and September, Vinhomes earned a net profit of VND7,866 billion ($311 million) on revenue of VND33,323 billion, down 26.4% and up 1.8% year-on-year, respectively.

This year, the developer has set a target of making a net profit of VND35 trillion ($1.38 billion) on revenue of VND120 trillion.

As of September 3, Vinhomes’ total assets stood at VND524.68 trillion ($20.74 billion), up 18% from end-2023. Of the total, cash and cash equivalents increased 46.2% to VND20.62 trillion. Unfinished construction expenses amounted to VND80.36 trillion, up 32.2%.

Meanwhile, its liabilities rose 17.8% against end-2023 to VND308.72 trillion ($12.2 billion). Its retained earnings went up 15.6% to VND154.22 trillion.

On October 23, Vinhomes started to implement a plan to buy back 370 million shares. Until October 30, it managed to purchase 65.19 million units, or 17.62% of the plan.

Shares of Vinhomes, listed on the Ho Chi Minh Stock Exchange as VHM, were trading up 0.36% at VND41,300 ($1.63) apiece at 9:30 a.m. on Thursday.