ACG – Q4 2023 business further improves – Earnings Flash
  • 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

Powered by Froala Editor