REE Corporation (stock code: REE) has just announced its business results for the first quarter of 2024, with consolidated revenue reaching VND 1,837 billion, down 22% year-on-year. Notably, the electricity and water infrastructure segment, which contributes the most to REE’s revenue structure, decreased by 34% to VND 1,026 billion. Electromechanical and real estate revenue were VND 552 billion and VND 263 billion, respectively, remaining unchanged compared to the same period last year.
The slower decline in cost of goods sold compared to revenue caused the company’s gross profit to plunge by 41% to VND 741 billion. Gross profit margin narrowed from 53% to 40% in this quarter.
Financial revenue increased by nearly 20% to VND 70 billion, while financial expenses, selling expenses, and general management expenses were all slightly reduced. However, REE’s net profit from operating activities still fell by 48% to VND 595 billion.
As a result, REE reported pre-tax profit of VND 599 billion and post-tax profit of VND 549 billion, both down 48% year-on-year. The parent company’s post-tax profit reached VND 480 billion, down 36%. EPS reached VND 1,176, while in the same period last year it was VND 1,823.
In its explanation, REE stated that the electricity segment decreased by VND 258 billion in the first quarter of 2024 due to the impact of declining profits from member and associated companies in the hydropower group compared to the same period last year, including Vinh Son Song Hinh Hydropower JSC, Thac Ba Hydropower JSC, Thac Mo Hydropower JSC, Central Hydropower JSC, etc.
In 2024, REE set a business plan for the year with a revenue target of VND 10,588 billion and a post-tax profit target of VND 2,409 billion, representing a respective increase of 23.5% and 10.1% compared to the actual results of 2023. Thus, the company has only completed 17% of its revenue plan and 23% of its profit plan for the year.
As of March 31, 2024, REE’s total assets reached VND 35,140 billion, an increase of VND 228 billion compared to the beginning of the year. Of which, cash and cash equivalents amounted to VND 3,319 billion, up by nearly 10%. Notably, REE’s trading securities increased by 24% to VND 894 billion during the quarter.
On the capital side, the company’s payables amounted to VND 14,286 billion, mainly in the form of long-term debt. Equity reached VND 20,854 billion, of which undistributed post-tax profit was recorded at VND 11,870 billion.
