- 2024-01-29T00:00:00
- Company Research
- ACG reported Q4 2023 results with revenue and NPAT dropping 17% YoY and 5% YoY, respectively.
- Full-year 2023 revenue and NPAT fell 16% and 29% YoY, fulfilling 84% and 69% of our 2023 forecasts, respectively. We see potential downside risk to our forecasts, pending a more extensive review.
- Q4 2023 domestic sales jumped 20% QoQ during the high season, remaining 22% lower YoY. However, Q4 2023 export sales and GPM compressed following strong 9M 2023 results.
- Nevertheless, exports cushioned 2023 results as export gross profits doubled due to early customer acquisition costs in export markets being phased out. Exports account for 11% of the 2023 gross profits. Their net profit contribution is higher than this because export sales are not as heavy in SG&A as with domestic sales.
- Q4 2023 and full-year 2023 domestic GPM continued to be resilient at 29.4%, marking a small compression YoY due to a higher fixed cost per unit.
- SG&A/revenue remained at a low level of ~16% in Q4 2023. H1 2023 SG&A expenses increased by 10% YoY, which was mainly due to marketing expenses resulting from ACG’s continued expansion of its distribution network to cover all of Vietnam’s 63 provinces/cities. However, H1 2023 included a portion of the expenses related to ACG's expansion in 2022, and as of mid-2023, ACG has already covered 58 provinces.
ACG’s 2023 business results
VND bn | Q3 2023 | Q4 2022 | Q4 2023 | Q4 2023 YoY | 2022 | 2023 | 2023 YoY | 2023 /2023F | 2023F |
Revenue | 963 | 1,384 | 1,151 | -17% | 4,475 | 3,762 | -16% | 84% | 4,476 |
- Domestic | 786 | 1,264 | 987 | -22% | 3,916 | 3,172 | -19% | 81% | 3,916 |
- Direct exports | 176 | 120 | 164 | 37% | 560 | 590 | 5% | 105% | 560 |
Gross profit | 298 | 430 | 339 | -21% | 1,338 | 1,108 | -17% | 82% | 1,349 |
- Domestic | 255 | 415 | 310 | -25% | 1,277 | 986 | -23% | N/A | N/A |
- Direct exports | 43 | 15 | 29 | 91% | 61 | 121 | 98% | N/A | N/A |
Selling expenses | -123 | -185 | -135 | -27% | -548 | -522 | -5% | 100% | -524 |
G&A expenses | -37 | -68 | -52 | -24% | -168 | -172 | 3% | 113% | -153 |
EBIT | 138 | 178 | 153 | -14% | 622 | 413 | -34% | 61% | 673 |
Financial income | 32 | 50 | 49 | -2% | 175 | 160 | -9% | 110% | 145 |
Financial expense | -9 | -26 | -8 | -71% | -57 | -46 | -20% | 81% | -56 |
Others | 1 | 8 | 3 | -68% | 11 | 13 | 15% | 15% | 11 |
PBT | 163 | 210 | 197 | -6% | 752 | 540 | -28% | 70% | 773 |
NPAT | 130 | 171 | 162 | -5% | 616 | 437 | -29% | 69% | 630 |
GPM | 31.0% | 31.1% | 29.4% |
| 29.9% | 29.4% |
|
| 30.1% |
- Domestic | 32.4% | 32.8% | 31.4% |
| 32.6% | 31.1% |
|
| N/A |
- Direct exports | 24.7% | 12.7% | 17.7% |
| 10.9% | 20.6% |
|
| N/A |
SG&A /revenue | 16.7% | 18.2% | 16.2% |
| 16.0% | 18.5% |
|
| 15.1% |
EBIT margin | 14.3% | 12.8% | 13.2% |
| 13.9% | 11.0% |
|
| 15.0% |
EBITDA margin | 17.0% | 14.8% | 15.4% |
| 16.4% | 13.7% |
|
| 17.5% |
NPAT-MI margin | 13.5% | 12.3% | 14.1% |
| 13.8% | 11.6% |
|
| 14.1% |
Source: ACG, Vietcap
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