- 2024-04-25T00:00:00
- Company Research
- ACG reported Q1 2024 results with revenue and NPAT increasing 2% YoY and 124% YoY, respectively, fulfilling 17% and 15% of our respective 2024 forecasts. As Q1 is typically a low season, we foresee insignficant changes to our forecasts, pending a more extensive review.
- In line with management’s guidance, Q1 2024 domestic sales remained weak, edging down 4% YoY. 1.5 years of low primary condo trancsactions in Vietnam led to weak home furnishing demand.
- Meanwhile, exports sales jumped 34% YoY, reflecting a recovery of Vietnam’s wooden furniture exports amid restocking activities from developed markets. In addition, the export GPM expanded from 13% in Q1 2023 to 25% in Q1 2024, as early customer acquisition costs in export markets are being phased out. This lifted blended GPM from 28% to 31% over the same period.
- Exports’ gross profits more than doubled and accounted for 17% of the Q1 2024 gross profits. Their net profit contribution is higher because export sales are not as heavy in SG&A as with domestic sales.
- SG&A/revenue cooled down from 25% in Q1 2023 to 22% in Q1 2024 because ACG slowed expansion of its distribution network now that it has covered 58 of Vietnam’s 63 provinces/cities.
ACG’s Q1 2024 business results
VND bn | Q1 2023 | Q1 2024 | YoY | Q1 2024 /2024F | 2024F |
Revenue | 680 | 695 | 2% | 17% | 4,092 |
- Domestic | 575 | 554 | -4% | 16% | 3,426 |
- Direct exports | 105 | 141 | 34% | 21% | 667 |
Gross profit | 191 | 214 | 12% | 17% | 1,233 |
- Domestic | 177 | 179 | 1% | N/A | N/A |
- Direct exports | 14 | 35 | 148% | N/A | N/A |
Selling expenses | -136 | -112 | -18% | 19% | -581 |
G&A expenses | -37 | -39 | 7% | 26% | -153 |
EBIT | 18 | 63 | 249% | 13% | 500 |
Financial income | 41 | 46 | 13% | 24% | 193 |
Financial expense | -16 | -10 | -40% | 24% | -41 |
Others | 5 | 2 | -63% | -86% | 13 |
PBT | 47 | 101 | 113% | 15% | 666 |
NPAT | 36 | 81 | 124% | 15% | 533 |
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| Q1 2023 | Q1 2024 |
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| 2024F |
GPM | 28.1% | 30.8% |
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| 30.1% |
- Domestic | 30.8% | 32.3% |
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- Direct exports | 13.4% | 24.7% |
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SG&A /revenue | 25.4% | 21.7% |
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| 17.9% |
EBIT margin | 2.7% | 9.1% |
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| 12.2% |
EBITDA margin | 6.6% | 12.8% |
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| 15.0% |
NPAT-MI margin | 5.3% | 11.7% |
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| 13.0% |
Source: ACG, Vietcap
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