In the first quarter, the Company, led by Mr. Johnathan Hanh Nguyen, recorded net revenue of over VND 680 billion and after-tax profit of VND 47 billion, up 20% and 26%, respectively, year-over-year.
The strong growth in revenue, along with high profit margins, is a major factor in SASCO’s positive business outlook. In Q1/2024, for every VND 100 of revenue, the Company earned VND 53 of gross profit. Another strength of SASCO is that it has no bank loans, as evidenced by zero borrowing costs.
On the downside, both sales and administrative expenses increased sharply, amounting to VND 240 billion and VND 72 billion, respectively. Notably, the increase in sales expenses is likely due to SASCO’s business cooperation agreement with airport port operator ACV, which requires SASCO to share revenue from sales and services.
According to SASCO’s explanation, the significant increase in profit is due to the Company’s business operations resuming normally, with passenger traffic at both domestic and international terminals increasing.
Based on these results, SASCO has only achieved 16% of its pre-tax profit target for 2024.
SASCO’s Q1/2024 business results
Unit: Billion VND
 Source: VietstockFinance
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Modest growth targets
In its plan for 2024, SASCO projects net revenue of over VND 2,800 billion and pre-tax profit of VND 343 billion, up 8% and 3%, respectively, year-over-year.
Explaining the modest growth plan, SASCO’s management believes that 2024 will see a slowdown in global economic growth compared to 2023 due to uncertainties from geopolitical conflicts and risks in the global financial market. The Vietnamese economy will also face the impact of these factors.
In terms of direction, the Company will continue to focus on Tan Son Nhat International Airport, particularly duty-free sales, lounges, and other services.
Speaking about the duty-free sector at a recent annual meeting, Chairman Johnathan Hanh Nguyen said that the sector’s recovery clearly depends on international visitors, as domestic travelers are not allowed to enter duty-free shops. Duty-free shops are only located in international terminals, but currently, SASCO’s and other companies’ duty-free businesses have not met expectations because Chinese tourists, who are known to be the biggest spenders, have yet to return.
“SASCO targets high-spending customers who are willing to shop,” he said. The Company would like to open a duty-free store in Ho Chi Minh City to serve international visitors in general and Chinese tourists in particular.
In addition, the cooperation between Johnathan Hanh Nguyen’s Inter-Pacific Group (IPPG) and China Duty Free will help SASCO boost its duty-free business in Vietnam.
Beyond duty-free, SASCO CEO Nguyen Van Hung Cuong said that expanding lounges will also be a core business for the Company. Currently, SASCO is partnering with a partner to open lounges at 16 local airports nationwide, excluding Noi Bai, Tan Son Nhat, and Da Nang airports. On the other hand, the Company already has two private lounges at Cam Ranh International Airport.
