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 …