ACV achieved net profit surpassing VND 11,560 billion in 2024

DNHN - Vietnam Airports Corporation (ACV) has recently announced its 2024 business results, reporting a net profit exceeding VND 11,560 billion, marking a 37% growth compared to the previous year.

ACV, one of the giants in the aviation industry, has just revealed impressive financial results for 2024. This year marks the highest profit in the company’s history, with remarkable figures in both revenue and net profit. This performance not only demonstrates ACV’s robust recovery after a challenging period but also reaffirms its dominant position in Vietnam’s aviation sector.

According to the fourth-quarter 2024 financial report, the company recorded net revenue of over VND 5,700 billion, representing a 14% increase compared to the same period in 2023. Notably, ACV’s net profit in this quarter reached VND 3,085 billion, surging by 111% year-on-year. This result is particularly significant amid the strong recovery of the international aviation market.

Three key factors have driven this outstanding growth for ACV. First is the strong recovery of the international aviation market, which had been severely impacted by the COVID-19 pandemic.

Second, the reversal of provisions for bad debts has significantly reduced the company’s management expenses, from VND 1,395 billion to VND 192 billion.

Lastly, the depreciation of the Japanese Yen against the Vietnamese Dong resulted in a considerable foreign exchange gain of VND 650 billion.

Looking back at the entire 2024, ACV also achieved a remarkable performance with net revenue of VND 22,555 billion, a 13% growth compared to 2023. The company’s net profit for 2024 surpassed VND 11,560 billion, marking a 37% increase year-on-year. This is the highest profit ever recorded by ACV, exceeding the revenue plan by 11% and the pre-tax profit plan by 53%.

In addition to the impressive business results, ACV’s financial situation is also noteworthy. The company currently holds more than VND 26,500 billion in cash and bank deposits, representing about 35% of its total assets. This financial strength enables ACV to maintain efficient operations and generate significant income from these assets, amounting to VND 1,090 billion in 2024.

However, a noteworthy point in ACV’s financial report is the short-term receivables from customers, which reached VND 10,444 billion, with many receivables from airlines such as Bamboo Airways, Pacific Airlines, and Vietravel Airlines. These receivables have led ACV to provision for bad debts of VND 3,788 billion. Nonetheless, receivables from major airlines such as Vietnam Airlines and Vietjet Air have significantly lower provisions.

With its strong financial results, ACV continues to play a pivotal role in Vietnam’s civil aviation sector. The company currently manages and operates 22 airports nationwide, including nine major international airports such as Tan Son Nhat, Noi Bai, and Da Nang. These airports are crucial in connecting Vietnam with international destinations and significantly contributing to the development of the domestic aviation industry.

One of ACV’s key projects is the Long Thanh International Airport project. This national infrastructure project has an investment of up to USD 4.6 billion for its first phase. The project has garnered significant attention from the government and is expected to increase passenger and cargo transport capacity while boosting tourism and trade development in Vietnam in the coming years.

With impressive business results in 2024, ACV is on a strong growth trajectory and is set to continue expanding its influence in Vietnam’s aviation industry. Key infrastructure projects such as Long Thanh Airport will be important drivers in maintaining the company’s leadership position in the sector.

Phan Chinh