HVN – Positive earnings continue in Q3 2024 - Earnings Flash
  • 2024-10-31T00:00:00
  • Company Research

* 9M 2024 Results:

HVN reported 9M 2024 revenue of VND80tn (USD3.2bn; +17.4% YoY). The company's 9M 2024 NPAT-MI reached VND6tn (USD228mn), a significant improvement compared to a net loss of VND3.7tn in 9M 2023. Revenue for 9M 2024 accounts for 69% of our full-year 2024 projection while NPAT-MI for 9M 2024 exceeds our expectations, as we had previously forecasted a full-year 2024 loss of VND1.3tn.

HVN’s gross margin showed a significant improvement, rising to 11.9% compared to 6.1% in the same period last year. As HVN does not disclose its cost breakdown at the consolidated level, we analyzed the cost breakdown at the standalone level (VNA) to understand the improvement in HVN's GPM. We observed that while revenue grew by 22.1% YoY, the growth of cost components was slower. In particular, the changes in fuel costs, labor costs, depreciation costs, and outsourcing costs were 12.9%, 14%, -18%, and 16.5% YoY, respectively. Fuel costs, labor costs, depreciation costs, and outsourcing costs accounted for 33.5%, 6.5%, 6.1%, and 53.4% of Vietnam Airlines' (VNA) total costs in 9M 2024, respectively.

HVN’s operating margin improved from -1.1% in 9M 2023 to 5.9% in 9M 2024. The 7% improvement in operating margin was primarily driven by a 5.8 ppt expansion in gross margin, while SG&A expenses/sales was 6% in 9M 2024 vs 7.2% in 9M 2023, further boosting the OPM expansion.

The airline’s cash flow from operations (CFO) saw a significant improvement, reaching VND6.6tn (USD253mn) in 9M 2024, compared to VND367bn (USD14mn) in 9M 2023. 

* Q3 2024 Results:

In Q3 2024, HVN reported net revenue of VND26.6tn (USD1.1bn; +13% YoY), while NPAT-MI improved to VND768bn (USD30.7mn), compared to a net loss of VND2.3tn (USD91mn) in Q3 2023. 

Financial income for HVN in Q3 2024 increased significantly by 219%, from VND177bn (USD7mn) in Q3 2023 to VND563bn (USD22.5mn), primarily driven by a substantial 238% YoY increase in foreign exchange gains to VND524bn.

HVN’s Q3 2024 & 9M 2024 results


Q3 2023

Q3 2024

YoY

9M 2023

9M 2024

YoY

9M 2024 as % of 2024F

Revenue

23,753

26,830

13%

68,089

79,924

17%

69%

VNA 

17,798

20,901

17%

51,088

62,353

22%

69%

-Transportation revenue

17,541

20,594

17%

50,291

61,497

22%

70%

-Total auxiliary

257

307

20%

797

855

7%

35%

Subsidiaries 

5,955

5,929

0%

17,002

17,572

3%

68%

 Net Revenue 

23,569

26,600

13%

67,628

79,162

17%

69%

Gross Profit

1,240

2,744

121%

4,128

9,448

129%

117%

SG&A

-1,913

-1,577

-18%

-4,899

-4,803

-2%

67%

Operating Profit

-674

1,167

N.M

-770

4,645

N.M

500%

 Financial income 

177

563

219%

635

892

40%

247%

 Financial expense 

-1,895

-812

-57%

-3,580

-3,736

4%

123%

 Gain/loss from associates 

32

26

-18%

97

166

72%

222%

 Net other income 

228

30

-87%

289

4,609

1494%

1440%

PBT 

-2,132

975

N.M

-3,329

6,576

N.M

N.M

 NPAT - MI

-2,277

768

N.M

-3,743

5,962

N.M

N.M









GPM

5.3%

10.3%


6.1%

11.9%



OPM

-2.9%

4.4%


-1.1%

5.9%



NPM

-9.7%

2.9%


-5.5%

7.5%



Source: HVN, Vietcap

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