SINGAPORE, Feb. 22,
2024 /PRNewswire/ -- VinFast Auto Ltd.
("VinFast" or the "Company") (Nasdaq: VFS), a subsidiary of
Vingroup JSC, and Vietnam's
leading electric automotive manufacturer, today announced its
unaudited financial results for the fourth quarter and fiscal year
ended December 31, 2023.
- Fourth quarter revenue of $437
million, an increase of 26% over the previous quarter and
133% year-over-year. Profit margins increased significantly driven
by cost optimization.
- Full year revenue of $1,198
million, an increase of 91% year-over-year.
- Targeting approximately 400 points of sales globally by the end
of 2024.
- Strengthening ability to compete effectively in other markets
to build scale, especially the untapped, volume-driven markets
closer to home like Indonesia and
India.
- Company sets target of delivering 100,000 vehicles in FY
2024.
- Cost reduction programs expected to further improve
margins.
|
FY
2023
|
4Q
2023
|
3Q
2023
|
EV
Deliveries1
|
34,885
|
13,513
|
10,027
|
E-scooters
Deliveries
|
72,468
|
24,309
|
28,220
|
Madam Thuy Le, Chairwoman
of the Board of Directors, said: "2023 was a whirlwind
of firsts for VinFast, culminating in a strong public debut. We
launched exciting new products, expanded our distribution network,
and solidified our presence in existing markets while opening doors
to promising new ones. These moves laid a strong foundation for
2024, a year of global expansion and cost optimization. We're
already seeing positive signs in key markets like the U.S. and
Indonesia. We're not resting on
our laurels. Fueled by this momentum and a recovering consumer
sentiment, we're setting an ambitious target of delivering 100,000
vehicles in 2024. This is a testament to our unwavering commitment
to building a greener future for all."
Ms Anh Nguyen, Chief
Financial Officer, stated: "We saw favorable results in
our business operations in the fourth quarter, with strong revenue
growth and improved profit margins. We remain focused on enhancing
investment performance and strengthening our balance sheet by
reducing production and materials costs and
strategically optimizing our global manufacturing CapEx. These
initiatives will support our expansion efforts into high-growth
markets like Indonesia and
India and unlock the potential of
these regions to drive substantial sales growth."
Strong Revenue Growth and Gross Profit Improvement from Prior
Year
VinFast delivered a total of 34,855 electric vehicles in FY
2023, marking a 374% increase compared to the previous year. This
included 13,513 electric vehicles in the fourth quarter, up 35%
from the third quarter of 2023.
Despite a slight decrease in the fourth quarter of 2023 compared
to the third quarter, e-scooter deliveries also saw significant
growth, rising 48% year-over-year for a total of 72,468 units in
2023.
VinFast's revenues reached $437
million in the fourth quarter of 2023, a 26% increase from
the previous quarter and a 133% increase year-over-year. This
growth was driven by both higher sales volumes and an improved
product mix.
Total revenues reached $1,198 million in FY 2023, representing an
increase of 91% from 2022.
Gross loss was $174.9 million in
the fourth quarter of 2023, and was $551.6 million in FY 2023.
VinFast's gross profit margin showed significant improvement
compared to the previous fiscal year. Gross margin was negative
(46%) in FY 2023, compared to negative (82%) in FY 2022. In the
fourth quarter of 2023, gross margin reached negative (40.1%),
compared to negative (82.6%) in the fourth quarter of 2022.
As part of its previously announced guidance, VinFast invested
$213 million in capital expenditures
during the fourth quarter of 2023, primarily on the development of
its VF 6 and VF 7 models, its North
Carolina manufacturing plant and on developing
showrooms and charging stations.
Expanding Commercial Footprint and Product Offerings,
Creating a Foundation for Future Growth
In FY 2023, VinFast accelerated its expansion efforts with a
multi-pronged strategy to scale its commercial footprint, product
offerings and manufacturing capabilities, setting the foundation
for growth in 2024 and beyond.
In terms of product launches, VinFast introduced four new SUV
models in Vietnam across a number
of segments, including the flagship VF 9 model, VF 5, VF 6 and the
VF 7. In particular, the VF 6, which launched in Vietnam in October, recorded initial sales far
above the Company's expectations.
In the fourth quarter of 2023, VinFast made an important pivot
from the capital-heavy, direct-to-consumer distribution model to a
capital-light hybrid model with a strong focus on leveraging
existing distribution infrastructure by building a dealership
network in the U.S. and globally.
VinFast now has 13 stores and service centers in California and 6 new dealers in 5 states -
New York, Texas, Kansas, Florida and North
Carolina, and has had an additional 75 dealers under
application.
The Company expects to reach approximately 130 points of sales
in North American and 400 globally by the end of 2024, with sales
through dealerships contributing a meaningful portion in the second
half of the year.
2024 Focus: More VinFast EVs on the Road and Cost
Reduction
In FY 2024, VinFast aims to balance revenue growth with cost
optimization, building on its success in optimizing production and
materials costs, and investing strategically in promising markets
closer to home.
To put more VinFast vehicles on the road, VinFast will broaden
the distribution channels through leveraging the local network and
expertise of 3rd party dealerships and distributors.
Building awareness and success in high-profile markets like the
U.S. strengthens the Company's ability to compete effectively in
other markets to build scale, especially the untapped,
volume-driven Asia markets.
Earlier this month at the Indonesia International Motor Show
(IIMS), VinFast announced its entry into the Indonesian market with
the right-hand-drive VF 5, VF e34, VF 6, and VF 7 models. The look
and feel of the cars, as well as the unique battery leasing option,
received positive feedback.
The Company has not released pricing yet but already received an
overwhelming number of deposits for its vehicles and thousands of
leads of interest. VinFast also signed MoUs with three businesses
at IIMS, solidifying its expansion in Indonesia and securing the delivery of a total
of 600 electric vehicles.
In India, VinFast aims to seize
the growth opportunities and market potential of the world's most
populous nation. Just over a month after the signing of a
Memorandum of Understanding (MoU) with the Government of Tamil
Nadu, India, VinFast has announced
the groundbreaking ceremony for the Integrated Electric Vehicle
Manufacturing Facility in Thoothukudi City. With a vision to become
a leading regional electric vehicle manufacturing hub, the plant
has a capacity of up to 150,000 electric vehicles per year when it
officially goes into operation.
VinFast's battery leasing policy has the potential to drive
sales significantly in new markets. This mechanism brings the
upfront price of VinFast vehicles and the monthly running cost down
in line with or even more competitive than many gas-powered
vehicles on the market today.
Cost optimization is the second key goal for the year. VinFast
is pursuing initiatives to reduce material costs by 40% within two
years of each model launch; half through engineering efforts such
as part redesign and platform optimization, and the other half
through sourcing and purchasing initiatives including in-sourcing
and supplier shifts. In addition, VinFast will continue
optimizing production and other costs.
Business Outlook
VinFast targets delivery of 100,000 vehicles in FY 2024,
leveraging a larger distribution network and supported by resilient
and potentially recovering macroeconomic conditions.
Encouraging signs are emerging for VinFast in early 2024,
particularly in California, where
the Company's direct-to-consumer approach has fueled a significant
order jump in January and February, marking a strong start in the
critical U.S. market.
After laying a solid foundation in markets such as the US,
Canada, and several European
countries, VinFast's global expansion strategy for 2024 focuses on
penetrating other global markets including markets closer to home
like Indonesia and India. This aligns with its CapEx optimization
strategy, along with targets for production and BOM
costs.
Conference Call
The Company's management will host its fourth quarter and full
year 2023 earnings conference call at 8:00
AM U.S. Eastern Time on February 22,
2024.
Live Webcast: https://edge.media-server.com/mmc/p/97n5zeka/
Q&A Participation:
https://register.vevent.com/register/BIffc51cc3f8a04a119934deb5bc4af497
For additional information, please visit
ir.vinfastauto.us.
About VinFast
VinFast - a subsidiary of Vingroup JSC - is Vietnam's leading automotive manufacturer
committed to its mission of creating a green future for everyone.
VinFast manufactures a portfolio of electric SUVs, e-scooters and
e-buses in Vietnam and exports to
the United States, and soon,
Europe. Learn more at
www.vinfastauto.us.
VinFast deliveries represent only one measure of the
company's financial performance and should not be relied on as an
indicator of quarterly financial results, which depend on a variety
of factors, including the average selling price and various
cost components.
Forward-Looking Statements
Forward-looking statements in this announcement, which are
not historical facts, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1955.
These statements include statements regarding our future results of
operations and financial position, planned products and services,
business strategy and plans, objectives of management for future
operations of VinFast, market size and growth opportunities,
competitive position and technological and market trends and
involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements because they contain words such as "may," "will,"
"shall," "should," "expects," "plans," "anticipates," "could,"
"intends," "target," "projects," "contemplates," "believes,"
"estimates," "predicts," "potential," "goal," "objective," "seeks,"
or "continue" or the negative of these words or other similar terms
or expressions that concern our expectations, strategy, plans, or
intentions. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while considered reasonable by
us and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to: (i) the effect of the consummation
of the business combination and the public listing of the Company's
securities on its business relationships, performance, financial
condition and business generally, (ii) the risk that the Company's
securities may experience a material price decline and volatility
in the price of such securities due to a variety of factors, (iii)
the adverse impact of any legal proceedings and regulatory
inquiries and investigations on the Company's business, (iv) the
Company's potential inability to maintain the listing of its
securities on Nasdaq, (v) the risk associated with the Company's
limited operating history, (vi) the ability of the Company to
achieve profitability, positive cash flows from operating
activities and a net working capital surplus, (vii) the ability of
the Company to fund its capital requirements through additional
debt and equity financing under commercially reasonable terms and
the risk of shareholding dilution as a result of additional capital
raising, if applicable, (viii) risks associated with being a new
entrant in the EV industry, (ix) the risks of the Company's brand,
reputation, public credibility and consumer confidence in its
business being harmed by negative publicity, (x) the Company's
ability to successfully introduce and market new products and
services, (xi) competition in the automotive industry, (xii) the
Company's ability to adequately control the costs associated with
its operations, (xiii) the ability of the Company to obtain
components and raw materials according to schedule at acceptable
prices, quality and volumes acceptable from its suppliers, (xiv)
the Company's ability to maintain relationships with existing
suppliers who are critical and necessary to the output and
production of its vehicles and to create relationships with new
suppliers, (xv) the Company's ability to establish manufacturing
facilities outside of Vietnam and
expand capacity in a timely manner and within budget, (xvi) the
risk that the Company's actual vehicle sales and revenue could
differ materially from expected levels based on the number of
reservations received, (xvii) the demand for, and consumers'
willingness to adopt, EVs, (xiii) the availability and
accessibility of EV charging stations or related infrastructure,
(xix) the unavailability, reduction or elimination of government
and economic incentives or government policies which are favorable
for EV manufacturers and buyers, (xx) failure to maintain an
effective system of internal control over financial reporting and
to accurately and timely report the Company's financial condition,
results of operations or cash flows, (xxi) battery pack failures in
the Company or its competitor's EVs, (xxii) failure of the
Company's business partners to deliver their services, (xxiii)
errors, bugs, vulnerabilities, design defects or other issues
related to technology used or involved in the Company's EVs or
operations, (xxiv) the risk that the Company's research and
development efforts may not yield expected results, (xxv) risks
associated with autonomous driving technologies, (xxvi) product
recalls that the Company may be required to make, (xxvii) the
ability of the Company's controlling shareholder to control and
exert significant influence on the Company, (xxiii) the Company's
reliance on financial and other support from Vingroup and its
affiliates and the close association between the Company and
Vingroup and its affiliates, (xxix) conflicts of interests with or
any events impacting the reputation of Vingroup affiliates or
unfavorable market conditions or adverse business operations of
Vingroup and Vingroup affiliates and (xxx) other risks discussed in
our reports filed or furnished to the Securities and Exchange
Commission.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the cautionary statements set forth above. You are cautioned not to
place undue reliance on any forward-looking statements, which are
made only as of the date of this announcement. VinFast does not
undertake or assume any obligation to update publicly any of these
forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting forward-looking statements, except to the
extent required by applicable law. If VinFast updates one or more
forward-looking statements, no inference should be drawn that it
will make additional updates with respect to those or other
forward-looking statements. The inclusion of any statement in this
announcement does not constitute an admission by VinFast or any
other person that the events or circumstances described in such
statement are material. Undue reliance should not be placed upon
the forward-looking statements.
1 Includes VF e34, VF 5, VF 6, VF 8, VF 9 and
e-bus
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SOURCE Vinfast Auto LLC