Vietnam Airlines Corporation reported pre-tax profit in the first quarter of 2023

DNHN - Vietnam Airlines Corporation (Vietnam Airlines, HoSE: HVN) has just released its consolidated financial statements for the first quarter of 2023, which include a greater number of positive indicators compared to the previous three years.

Vietnam Airlines explained this business result by stating that it had restored 100% of domestic routes and 90% of international routes since the outbreak.

Vietnam Airlines recorded a net revenue from sales and service provision of VND 23,494 billion in the first quarter of 2023, which was double the same period last year. However, the cost of goods was 21,534 billion dongs, so the company's gross profit was only 1,959 billion dongs. Nevertheless, this profit is still superior to the VND1,594 billion gross loss of the previous year.

During the same time frame, the company's financial income increased by 262 billion dongs to 366 billion dongs.

Financial expenses increased by 46% year-over-year to VND 773 billion, with interest expense comprising nearly half. Additionally, selling expenses increased significantly by 187% to nearly VND 1 trillion. Expenses associated with business administration and other expenses are greater than in the first quarter of 2022.

This quarter, the company recorded a net profit of VND 57 billion from business activities, compared to a loss of VND 2,742 billion in 2022.

This airline recorded a consolidated pre-tax profit of VND 19.3 billion in the first quarter of 2023, while it lost more than VND 2,600 billion during the same period. However, Vietnam Airlines' profit after taxes was still negative at 37,3 billion dongs, compared to a loss of 2,685 billion dongs during the same period. This is also Vietnam Airlines' lowest quarterly loss in the past 13 quarters.

Vietnam Airlines stated that the restructuring project for the period 2021-2025 has been completed, reported to shareholders, and authorized by the General Meeting of Shareholders for the Board of Directors to approve and implement the Vietnam Airlines restructuring project for the period 2021-2025 after the competent authority approved the principle for solutions to remove Vietnam Airlines' difficulties.

In the project, the Corporation will implement concurrent solutions to overcome losses and negative equity, improve business performance and financial situation, and quickly recover through restructuring. After receiving approval from the appropriate authorities, structuring the assets and investment portfolio to increase income, supplement cash flow, and prepare the necessary conditions to implement the plan to issue shares to increase equity.

Bao Phuong