Vietnam hospitality main Vinpearl reviews $102 mln benefit in 2024

Vinpearl JSC, the hospitality arm of Vietnam’s leading private conglomerate Vingroup, posted an after-tax profit of VND2.55 trillion ($101.7 million) in 2024, 3.8 times higher than the previous year.

Its 2024 financial statement showed the company’s net revenue of VND14.4 trillion ($574.17 million), marking a 55% growth year-on-year.

While revenue spiked, the company’s cost of goods sold remained almost the same as the previous year. As a result, Vinpearl moved from a gross loss of VND2.57 trillion ($102.5 million) in 2023 to a gross profit of VND2.86 trillion in 2024.

This “transformation” enabled Vinpearl to achieve a net profit of VND3.1 trillion ($123.6 million) from core business activities, leading to a pre-tax profit of VND2.94 trillion and an after tax profit of VND2.55 trillion ($101.7 million). Its earnings per share (EPS) hit VND1,512 ($0.06).

This marks the third consecutive year of profitability for Vinpearl. Previously, the company suffered substantial losses during the 2019-2021 period due to the Covid-19 pandemic.

Vinpearl welcomed over 1.3 million international visitors in 2024, up 58% from 2023, while the country’s entire tourism sector received 17.6 million foreigners, up 40% year-on-year.

As of December 31, 2024, Vinpearl’s total assets were nearly VND77 trillion ($3.07 billion), increasing by VND33 trillion, or 74%, compared to the beginning of the year. Notably, “short-term loans receivable” was zero at the start of the year but rose to VND12.5 trillion by year-end.

Regarding liabilities, “short-term advances from customers” surged from over VND1 billion at the start of the year to VND13.85 trillion ($552.23 million) by year-end. “Capital surplus” turned from negative VND2.04 trillion at the beginning of the year to VND11.39 trillion ($454.15 million) by year-end.

Vinpearl’s short-term debt decreased by over VND10 trillion ($398.7 million), but long-term debt increased by nearly VND9.4 trillion in the past year. The company revealed that it had carried out several restructuring transactions and capital increases over the year.

On February 23 and 26, 2024, Vinpearl used capital raised from investors to purchase shares from certain investors at Vinpearl Landmark 81 JSC (160.5 million shares, or a 99.99% stake), Thanh Hoa Hotel Investment and Development JSC (68.7 million shares, or 99.99%), and Vinwonders Nha Trang JSC (291.9 million shares, or 99.99%).

Vinpearl also transferred business control rights at a project in Phu Quoc town, Kien Giang province to Phu Quoc Tourism Co., Ltd. Additionally, it transferred control of beachfront villa projects in various provinces.

On November 12, 2024, Vinpearl made a series of senior management changes, including the appointment of Dang Thanh Thuy as CEO, replacing Doerr Juergen Peter. It replaced its entire supervisory board in March 2024 and again in November.

Vinpearl currently has a charter capital of VND17.23 trillion ($687 million), with Vingroup (HoSE: VIC) holding a 85.51% stake, equivalent to VND14.74 trillion.

Vinpearl is expected to relist its shares on the stock market. Previously, it was listed on the Ho Chi Minh Stock Exchange (HoSE) as VPL since early 2008. However, at the end of 2011, Vinpearl merged with Vincom to form Vingroup, and VPL was changed into VIC.