VinFast Reports Unaudited First Quarter 2024 Financial Results
- First quarter revenue rose 269.7% year-over-year (YoY) to $302.6 million.
- Deliveries rose 444% YoY to nearly 9,700 vehicles.
- Launching in new key markets in Southeast Asia, including Indonesia and Thailand, entering the Middle East & Africa, starting construction of a manufacturing facility in India, and growing sales network worldwide.
- Reaffirmation of the 100,000 vehicle deliveries target in 2024.
Madam Thuy Le, Chairwoman of the Board of Directors, said: "While VinFast acknowledges ongoing global economic and geopolitical uncertainties, we view them as temporary hurdles. With our diverse product range, fast-growing global sales network, outstanding after-sales policy, and our groundbreaking battery subscription policy, VinFast has outlined a clear roadmap for the rest of the year and remains committed to our target of delivering 100,000 electric vehicles in 2024."
Ms Anh Nguyen, VinFast Chief Financial Officer, added: "We remain steadfastly committed to driving continuous improvements across our business. Our focus on materials optimization, scale advantages, and disciplined cost management will be key to delivering sustained value for our shareholders."
Deliveries and Revenues Soar in the First Quarter Compared to the Same Period in 2023
VinFast delivered a total of 9,689 vehicles in the first quarter of 2024, marking an increase of 444% year-over-year (YoY).
Total revenues were US$302.6 million, representing an increase of 269.7% from the first quarter of 2023. This growth was driven by successful new campaigns like the expansion of VinFast's dealership network and customer interest in new electric car models.
Gross loss in the first quarter of 2024 was US$150.8 million, while gross margin improved from negative (172.9%) in the first quarter of 2023 to negative (49.8%) in the first quarter of 2024.
VinFast is Building Strong Foundations to Support H2 Growth
In the first quarter of 2024, VinFast continued to closely follow its global growth roadmap by launching its brand in Thailand and Indonesia, establishing a presence in the Middle East, beginning construction of its manufacturing facility in India, and ramping up its sales network globally.
While domestic sales still drove most of the revenues this quarter, VinFast recorded encouraging growth in the U.S. market, with several new dealers reporting sales figures.
In the first quarter of 2024, VinFast has also secured partnerships with 10 new dealers, bringing its total U.S. network to 16 dealers across 7 states, including North Carolina, New York, Texas, Florida, Kansas, Connecticut, and Kentucky. These newly signed dealerships will begin operations in the second quarter.
Beyond current markets, VinFast is also ramping up its presence and sales efforts in markets across Southeast Asia. At the 2024 Bangkok International Motor Show, the Company officially launched its brand in Thailand and signed Letters of Intent with 15 dealers, with a target of operating 22 stores in Bangkok.
In Indonesia, VinFast officially opened its first dealer store and started sales of the VF e34, a C-segment electric SUV. Notably, the Company has implemented a unique battery subscription policy within the market, specifically designed to incentivize Indonesian consumers to switch to electric vehicles by offering lower initial and operating costs.
In March, VinFast officially started deliveries of its C-segment electric SUV VF 7 to customers in Vietnam.
The Company also expanded its global footprint with first distribution agreements signed in Oman, Ghana, and Micronesia.
VinFast Remains Committed to the Goal of Delivering 100,000 Vehicles in 2024
Despite marco-economic challenges facing the electric vehicle industry, VinFast has established clear plans and remains committed to the target of delivering 100,000 electric cars in 2024, with the majority of deliveries expected in the second half of the year. This goal will be primarily driven by the Company's rapidly expanding distribution network, the introduction of new models targeting a broader customer base, and entry into new markets.
Concerning the product lineup, VinFast plans to deliver the much awaited and affordable VF 3 model in Vietnam. The Company will also launch the VF 9 and VF 7 in North America and plans to complete its full electric vehicle lineup for global markets.
Regarding charging infrastructure, Mr. Pham Nhat Vuong, Founder and CEO of VinFast, announced the establishment of V-GREEN in March 2024, to develop a global network of charging stations specifically for VinFast vehicles. By reducing capital expenditures (Capex) on infrastructure, VinFast can maintain its unwavering focus on driving business growth.
Conference Call
The Company's management will host its first quarter 2024 earnings conference call at 8:00 AM U.S. Eastern Time on April 17, 2024.
Live Webcast: https://edge.media-server.com/mmc/p/jy88a8z3
For additional information, please visit ir.vinfastauto.us.
Investor Relations Email: ir@vinfastauto.com
Media Relations Email: info@vinfastauto.com
Hashtag: #VinFast #financialresults
The issuer is solely responsible for the content of this announcement.
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.
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