SINGAPORE, Nov. 26, 2024 /PRNewswire/ -- VinFast Auto Ltd. ("VinFast" or the "Company") (Nasdaq: VFS), a pure-play electric vehicle ("EV") manufacturer with the mission of making EVs accessible to everyone, today announced its unaudited financial results for the third quarter ending September 30, 2024.
VinFast VF 9
VinFast reported strong third-quarter results, delivering 21,912 vehicles, a 115% year-over-year increase. Revenue reached US$511.6 million, up 49.3% year-over-year.
The Company became the top-selling automotive brand in Vietnam for September, October, and for the first ten months of 2024 while continuing to make strides in its global expansion.
VinFast remains committed to its growth strategy and has secured capital commitments to support its expansion plans. The Company is focused on balancing revenue growth and optimizing costs.
Madam Thuy Le, Chairwoman of VinFast, said: "The third quarter's result was underpinned by a robust September, as we recorded the highest monthly deliveries in our home market, Vietnam. This marks a historic milestone for Vietnam's automotive industry where, for the first time since we were established seven years ago, a domestic OEM has outperformed international competitors to become the market leader across the passenger vehicle market. We expect to finish 2024 on a strong note and meet our 80,000-vehicle delivery target, as the momentum in Q3 has continued into Q4. Producing high-quality electric vehicles is a complex task, one that requires unwavering dedication and fortitude to navigate ongoing uncertainties. Every day we are learning how to make durable and exciting EVs that will be a key part of the global transition to green mobility. The path to green mobility is challenging, but our commitment to this future is resolute—because the future is, without question, electric."
Ms. Lan Anh Nguyen, Chief Financial Officer of VinFast, added: "I am pleased to share that Q3'24 was in line with our internal forecast, driven by an acceleration in our top line and an improvement in profitability as gross loss and net loss narrowed significantly. Increasing scale, ongoing BOM and production cost optimization and improved operating efficiencies have already started to have a positive impact on gross margin and will continue to be key drivers for our path to profitability. Our overall liquidity position has been enhanced by the recently announced loans from Vingroup and grants from our Founder, whereby we expect to receive a potential of $3.5 billion injection by the end of 2026."
EV Deliveries Up 115%, Revenue Up 49.3%
In the third quarter of 2024, VinFast delivered 21,912 electric vehicles. This represents a substantial increase of 66% compared to the second quarter of the same year and a significant 115% increase compared to the third quarter of 2023. Notably, B2C deliveries experienced a considerable quarterly increase of 163%, highlighting strong market demand for VinFast's EVs.
Total revenues were VND12,326,537 million (US$511.6 million) in the third quarter of 2024, representing an increase of 49.3% from the third quarter of 2023 and an increase of 42.2% from the second quarter of 2024.
Gross loss was VND2,957,886 million (US$122.8 million) in the third quarter of 2024, representing a decrease of 45.6% from the second quarter of 2024.
The gross margin in the third quarter of 2024 was negative 24.0%. This represents a significant improvement compared to the negative 27.0% margin in the same quarter of the previous year and the negative 62.7% margin in the second quarter of 2024.
Net loss was VND13,251,944 million (US$550.0 million) in the third quarter of 2024, representing a decrease of 14.8% from the third quarter of 2023 and a decrease of 29.4% from the second quarter of 2024.
The Vietnamese Market Significantly Contributes to Revenue Growth
In September, VinFast recorded robust monthly deliveries in its home market of Vietnam, firmly positioning VinFast as the top-selling car brand in Vietnam for the month. This marked the first time ever that a Vietnamese EV brand outperformed all international competitors to become the market leader in terms of monthly sales.
In October, VinFast delivered more than 11,000 EVs to customers in Vietnam, representing a 21% increase compared to September and bringing total deliveries in Vietnam to more than 51,000 EVs from January 1 to October 31, 2024. This positioned VinFast as the best-selling automotive brand in the Vietnamese market for October and the first ten months of 2024.
In response to increasing demand for affordable EVs and to improve production efficiencies, the Company plans to add a new completely knocked down (CKD) factory in Ha Tinh, Vietnam focusing on VF 3 and VF 5. The factory will be under a long-term lease structure to optimize initial spendings.
The factory targets a maximum capacity of 300,000 EVs per year, subject to demand and general market conditions, with a gradual ramp up in capacity and production overtime. The construction of the factory will begin in early December, and the factory is expected to commence operations in 2025.
VinFast Expands Global Footprint
VinFast continues to expand its global reach. As of October 31, 2024, the Company had 173 showrooms globally for EVs and 160 showrooms and service workshops for e-scooters, including VinFast showrooms and dealer showrooms.
The Company's acceleration towards a dealership model as part of its international strategy is starting to pay off. September was a record-breaking month for VinFast in North America, driven by a growing dealer network and continuous improvements to its electric vehicles. In November, VinFast started delivering the VF 9 to customers in the U.S. and Canada.
In Indonesia, VinFast has initiated the delivery of its first right-hand drive VF e34 and VF 5, with a growing network of 17 dealerships spanning 15 cities as of October 31, 2024. The Company is also working on its plant in Subang, scheduled to commence operations in 2025.
In the Philippines, VinFast opened reservations for three models – the VF 3, VF 5, and VF 7. As of October 31, VinFast had eight dealer stores in six Philippine cities.
VinFast's Indian plant, with an annual capacity of 50,000 electric vehicles, is gearing up for equipment and machinery installation. The plant is scheduled to begin operations in 2025.
VinFast also officially launched its brand in the Middle East in October, opening its first dealership in United Arab Emirates, located in downtown Dubai.
VinFast Secures Significant Funding
VinFast has received financial backing from its founder and parent company. VinFast's Founder and Chief Executive Officer, Mr. Pham Nhat Vuong, and his associated companies intend to provide up to VND50 trillion (US$2.1 billion) in free grants to the Company and its subsidiaries through the end of 2026.
In addition, Vingroup Joint Stock Company intends for it and its subsidiaries (collectively "Vingroup") to provide VinFast's subsidiaries incorporated in Vietnam with up to VND35 trillion (US$1.5 billion) in loans through the end of 2026.
Vingroup has approved the plan for additional capital contributions to VFTP, a direct subsidiary of VinFast holding the Company's EV manufacturing business in Vietnam, by converting up to VND80 trillion (US$3.3 billion) of loans extended by Vingroup to VFTP into preference shares issued by VFTP.
VinFast Poised for Strong Finish to 2024
The Vietnamese Nasdaq-listed electric vehicle manufacturer is optimistic about its performance in the fourth quarter of 2024. Building on the strong momentum from the third quarter, particularly in key markets like Vietnam and North America, VinFast is reiterating its annual delivery target of 80,000 vehicles.
To ensure sustainable growth, VinFast remains committed to prudent financial management and cost optimization. The Company is actively working to improve its profitability while continuing to expand its global footprint.
Conference Call
The Company's management will host its 3Q24 earnings conference call at 8:00 AM U.S. Eastern Time on November 26, 2024. Details for the call are below:
- What: VinFast Q3 2024 Financial Results and Q&A Webcast
VinFast (NASDAQ: VFS), a subsidiary of Vingroup JSC, one of Vietnam's largest conglomerates, is a pure-play electric vehicle ("EV") manufacturer with the mission of making EVs accessible to everyone. VinFast's product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses. VinFast is currently embarking on its next growth phase through rapid expansion of its distribution and dealership network globally and increasing its manufacturing capacities with a focus on key markets across North America, Europe and Asia. Learn more atwww.vinfastauto.us
Forward-Looking Statements
Forward-looking statements contained herein, 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 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, (ii) the adverse impact of any legal proceedings and regulatory inquiries and investigations on the Company's business, (iii) risks associated with the Company's limited operating history, (iv) the ability of the Company to achieve profitability, positive cash flows from operating activities, and a net working capital surplus, (v) 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, (vi) risks associated with being a new entrant in the EV industry, (vii) the risks of the Company's brand, reputation, public credibility, and consumer confidence in its business being harmed by negative publicity, (viii) the Company's ability to successfully introduce and market new products and services, (ix) competition in the automotive industry, (x) the Company's ability to adequately control the costs associated with its operations, (xi) the ability of the Company to obtain components and raw materials according to schedule at acceptable prices, quality, and volumes acceptable from its suppliers, (xii) 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, (xiii) the Company's ability to establish manufacturing facilities outside of Vietnam and expand capacity in a timely manner and within budget, (xiv) the risk that the Company's actual vehicle sales and revenue could differ materially from expected levels based on the number of reservations received, (xv) the demand for, and consumers' willingness to adopt, EVs, (xvi) the availability and accessibility of EV charging stations or related infrastructure, (xvii) the unavailability, reduction, or elimination of government and economic incentives or government policies which are favorable for EV manufacturers and buyers, (xviii) 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, (xix) the risk of battery pack failures in the Company or its competitor's EVs, (xx) risks related to the failure of the Company's business partners to deliver their services, (xxi) errors, bugs, vulnerabilities, design defects, or other issues related to technology used or involved in the Company's EVs or operations, (xxii) the risk that the Company's research and development efforts may not yield expected results, (xxiii) risks associated with autonomous driving technologies, (xxiv) product recalls that the Company may be required to make, (xxv) the ability of the Company's controlling shareholder to control and exert significant influence on the Company, (xxvi) 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, (xxvii) 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 (xxviii) other risks discussed in our reports filed or furnished to the SEC.
All forward-looking statements attributable to us or people 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 hereof. 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 herein 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.
