While the court has not reached a conclusion on its lawsuit against Grab, Vinasun reported falling profit and staff in 2018.
|Vinasun reduced profit as well as staff |
According to Vinsaun’s consolidated financial report for the last quarter of 2018, the firm recorded VND516.5 billion ($22.45 million) in total revenue, up 6.2 per cent compared to 2017. Meanwhile, the cost of sales only increased by 4.5 per cent, which means Vinasun still achieved VND112.8 billion ($4.9 million) of gross profit, up 11.3 per cent over the same period last year.
The positive point of Vinasun in 2018 was that business management costs by 39 per cent to VND39.5 billion ($1.72 million).
On the contrary, profit in this period fell by 61 per cent more than during the same period to only VND34.7 billion ($1.5 million). Therefore, the total pre-tax profit of Vinasun decreased by more than 22 per cent over the same period, reaching VND45.8 billion ($1.99 million). After-tax profit was recorded at VND33.8 billion ($1.47 million), down 23 per cent ($1.8 million in 2017).
In 2018, Vinasun collected VND1.82 trillion ($79.1 million) in total revenue, down more than 29 per cent compared to 2017 (VND2.7 trillion – $117.39 million).
Passenger transport service by taxi remains Vinasun’s major income line, reaching VND889.8 billion ($38.69 million). This figure is only equal to 43 per cent of the same period in 2017. Meanwhile, revenue from franchising surged by 55 per cent to VND877.7 billion ($38.16 million) and became one of the main revenue sources.
After deducting all kinds of expenses, Vinasun's operating profit in 2018 was only VND11.1 billion ($482,600).
Profit was earned mainly from other sources. However, these alternative profits were only half of those from the previous year, at VND100.2 billion ($4.36 million). This is partly due to the decline in revenue from the liquidation of fixed assets. In 2018, this figure was only VND48.5 billion ($2.1 million), only equal to 29 per cent of the figure in 2017.
Currently, Vinasun has only one subsidiary, Vinasun Green JSC in which it holds 90 per cent of the equity. Continuing the process of restructuring and promoting franchising activities, the number of Vinasun's employees in 2018 decreased by 356.
Previously, throughout 2017, as profit plunged, Vinasun laid off more than 10,000 of its employees.